UNIVERSITY 

OF  CALIFORNIA 

LOS  ANGELES 


SCHOOL  OF  LAW 
LIBRARY 


TAX  EXEMPT  AND  TAXABLE 
INVESTMENT  SECURITIES 


A  Summary  of  the  Laws  of  All 
the  States  and  the  District  of 
Columbia  Relating  to  the  Tax- 
ation of  Securities  from  the 
Standpoint  of  the  Banker  and 
Investor. 


By 

SYDNEY  R.  WRIGHTINGTON 

nr 

and 
WELD  A.  ROLLINS 

Of  the  Boston  Bar 


I 

Published  by 

THE    FINANCIAL    PUBLISHING    COMPANY 
Boston,  U.  S.  A. 


COPYRIGHT,  1913,  BY 
SYDNEY  R.  WRIGHTINGTON 

AND 

WELD  A.  ROLLINS, 
BOSTON,  MASS. 


r 


J.  B.  LYON  COMPANY 

BOOK  MANUFACTURERS, 

ALBANY,  N.  Y. 


TAXATION  OF  INVESTMENTS. 


PREFACE. 


This  book  is  intended  as  a  manual  for  the  use  of 
investors  and  dealers  in  investment  securities.  It 
treats  of  the  laws  of  the  various  states  of  the  Union 
levying  a  direct  property  tax  on  investments.  It 
does  not  include  inheritance  taxes1  or  stock  trans- 
fer taxes.  These  are  not  properly  described  as  in- 
cluded in  the  direct  property  tax.  The  taxes  re- 
ferred to  are  levied  by  states,  counties,  cities,  towns, 
or  specially  created  municipal  districts  within  states, 
on  property  in  the  hands  of  its  owner  assessed  at  a 
given  rate  in  proportion  to  the  value  of  the  property 
or  upon  incomes.  These  are  the  great  fundamental 
annual  taxes  which  form  the  backbone  of  our  public 
revenue. 

This  book  is  not  intended  as  a  legal  treatise  and 
does  not  contain  a  discussion  of  the  constitutional 
limitations  on  the  taxing  power  or  questions  relating 
to  the  interpretation  of  tax  statutes.  The  citations 
of  the  statutes  are  given  for  the  convenience  of  those 
who  may  wish  to  make  a  more  detailed  study  of  a 
particular  statute  in  a  given  state.  The  occasional 
citations  of  decisions  do  not  purport  to  be  exhaust- 

1.  Inheritance  taxes  by  the  several  states  have  been  fully 
treated  in  Blakemore  and  Bancroft,  Inheritance  Taxes,  Boston 
Book  Co.,  Boston,  1912.  There  seems,  therefore,  no  need  of 
discussing  this  subject  here. 


4  INVESTMENT  SECURITIES 

ive.  The  work  includes  all  statutes  in  force,  on 
January  1, 1913,  except  the  Session  Laws  of  Vermont 
for  1912  which  were  not  available.  The  decisions 
have  been  examined  up  to  December  1,  1912,  in  all 
states, 

The  arrangement  adopted,  it  is  hoped,  will  be 
more  convenient  for  investors  than  a  more  elaborate 
statement.  It  necessitates,  however,,  abbreviations 
and  the  use  of  terms  throughout  the  scheme  of  class- 
ification in  a  somewhat  arbitrary  sense.  To  avoid 
prolix  repetition,  these  terms  are  used  in  a  uniform 
sense  throughout  the  book  except  where  expressly 
qualified.  It  is  necessary,  therefore,  to  give  at  the 
outset  a  series  of  definitions  of  terms  which  may  not 
be  technically  accurate,  but  which,  it  is  hoped,  will 
prove  convenient.  It  seems  wise  that  these  should 
be  made  decidedly  elementary. 

Investments  have  been  roughly  classified  as  stocks, 
bonds,  notes,  and  deposits.  There  are  frequently 
securities  which  partake  so  much  of  the  nature  of 
more  than  one  of  the  above  groups  or,  in  other  words, 
are  so  close  to  the  dividing  line  between  them,  that 
there  may  well  be  a  difference  of  opinion  as  to  the 
class  within  which  they  should  fall.  In  general, 
however,  stocks  represent  proprietary  interests  in 
some  association  incorporated  or  unincorporated, 
and  bonds,  notes,  and  deposits  are  obligations  or 
contracts.  Stocks  have  been  divided  into  several 
groups  because  some  of  the  states  have  made  such 
an  arbitrary  division  for  taxation  purposes.  It  has 
seemed  wise  to  adopt  the  most  familiar  of  these 
classifications.  Many  states  make  no  such  distinc- 


EXEMPT  AND  TAXABLE  5 

tions,  and  the  same  rule  applies  to  more  than  one  of 
the  kinds  of  stock  distinguished  in  our  classification. 
So  far  as  possible,  needless  repetition  has  been 
avoided  in  such  cases  by  grouping  titles  together  in 
brackets,  but  to  avoid  confusion  the  same  scheme  of 
classification  has  been  maintained. 


STOCKS. 


Corporations  which  issue  certificates  representing 
the  shares  in  their  capital  stock  owned  by  individu- 
als are  in  theory  artificial  persons  created  by  some 
sovereign  power,  such  as  the  United  States  or  a 
state  of  the  Union.  A  corporation  organized  under 
the  laws  of  one  jurisdiction  may  transact  business 
and  hold  property  in  another,  and  its  shares  may  be 
owned  by  a  citizen  of  a  third.  The  technical  terms 
for  distinguishing  between  a  corporation  which  re- 
ceives its  charter  from  the  state  levying  the  tax  and 
a  corporation  which  receives  its  charter  from  some 
other  state  are  the  words  "  domestic  "  and  "  for- 
eign." So  far  as  possible  these  words  have  been 
avoided,  and  the  name  of  the  state  granting  the 
charter  to  the  corporation  has  been  prefixed.  For 
example,  "  Massachusetts  Corporations "  means 
corporations  receiving  their  charter  from  that  state 
and  does  not  include  corporations  chartered  by  other 
states  but  doing  all  or  part  of  their  business  in 
Massachusetts. 


6  INVESTMENT  SECURITIES 

(1)  The  first  group,  "  Bank  Stocks,"  includes  the 
following : 

(a)  A  national  bank  is  incorporated  under  the 
laws  of  the  United  States  of  America,  but  located 
and  doing  business  in  some  one  of  the  states.     The 
tax  referred  to  in  this  subdivision  is  a  tax  on  the 
stock  of  a  national  bank  doing  business  in  the  state 
imposing  the  tax.    The  right  of  the  states  to  tax  stock 
in  national  banks  has  been  limited  and  defined  by 
numerous  decisions  of  the  United  States  Supreme 
Court.     States  can  tax  stockholders  but  cannot  tax 
the  banks.    Most  state  statutes  try  to  get  around 
this  and  collect  the  tax  through  the  bank  because 
that  is  practically  the  only  way  they  can  get  it. 
Many  of  these  statutes  in  their  present  form  are 
of  doubtful  constitutionality.     Shares  in  national 
banks  under  federal  statute  can  be  taxed  only  in 
the  state  where  the  bank  is  located.    Hence  this  sec- 
tion includes  only  national  banks  located  in  the  state 
in  question.    It  is  to  be  remembered  in  this  connec- 
tion that  the  same  statute  that  prevents  a  state  from 
taxing  its  own  citizens  on  shares  owned  in  national 
banks  located  in  other  states  permits  each  state  to 
tax  nonresidents  on  shares  owned  in  national  banks 
located  in  the  taxing  state.     (U.  S.  Rev.  St.,  Sec. 
5219 ;  Tappan  v.  Merchant's  National  Bank,  19  Wall. 
490.) 

(b)  The  second  group  consists  chiefly  of  state 
banks  of  discount.    In  many  states  there  are  no 
institutions  incorporated  under  the  laws  of  the  state 
which  are  technically  called  banks.    In  those  states 


EXEMPT  AND  TAXABLE  7 

there  are  usually,  however,  trust  companies,  which 
perform  the  functions  of  banks  and  are  usually 
treated  similarly  for  purposes  of  taxation.  They 
are  included  in  this  section  except  where  expressly 
distinguished.  In  some  states  savings  banks  have  a 
share  capital  and  issue  certificates  of  stock.  In  such 
states  these  shares  will  be  included  in  this  group. 

(c)  The  third  group  relates  to  the  taxation  of 
shares  held  by  a  citizen  of  one  state  in  the  capital 
stock  of  a  bank  organized  under  the  laws  of  some 
other  state  or  country. 

(d)  The  shares  in  co-operative  banks,  or  building 
and  loan  associations,  as  they  are  more  generally 
called,  perhaps  should  not  technically  be  included 
in  the  classification  of  stocks  since  they  more  nearly 
resemble  deposits  in  banks.    It  seemed  more  likely, 
however,  that  they  would  be  looked  for  under  the 
heading  of  bank  stocks  and  they  have  been  so  classi- 
fied.   They  are  usually  taxed  by  a  special  statute. 
Such  shares  are  usually  owned  in  the  state  incor- 
porating the   association  and  therefore   the   sum- 
maries deal  only  with  shares  in  domestic  building 
and  loan  associations  except  where  the  contrary  is 
expressly  stated. 

(2)  Public  service  corporations  may  be  roughly 
defined  as  those  which  are  held  to  be  under  greater 
obligations  to  the  public  than  ordinary  business  cor- 
porations, either  because  of  the  semi-monopolistic 
character  of  their  business  or  because  of  privileges 


8  INVESTMENT  SECURITIES 

conferred  by  the  state.2  This  group  includes  railroad, 
street  railway,  telephone  and  telegraph,  and  other 
similar  corporations.  The  technical  legal  limita- 
tions of  the  term  "  public  service  corporations  ': 
cannot  be  accurately  denned  and  may  vary  at  dif- 
ferent periods  of  time.  The  securities  of  certain 
kinds  of  corporations,  however,  which  are  usually 
included  in  the  definition  of  "  public  service  cor- 
porations, ' '  are  generally  taxed  by  statutes  different 
from  those  which  tax  the  securities  of  other  corpora- 
tions even  when  the  tax  itself  is  the  same.  Without 
attempting  legal  accuracy,  therefore,  we  have  arbi- 
trarily included  in  this  book  (except  where  other- 
wise expressly  stated)  in  the  term  "  public  service 
corporations  "  all  companies  engaged  in  the  follow- 
ing businesses:  Eailroad,  steam  or  electric,  street 
railway,  telephone,  telegraph,  gas,  electric  light. 

When  companies  engaged  in  other  lines  of  pub- 
lic service  in  a  given  state  are  treated  as  public 
service  corporations  for  the  purpose  of  taxation, 
they  are  specifically  enumerated  in  the  summaries 
if  that  state  makes  any  distinction  between  the 
method  of  taxing  public  service  stocks  and  the 
method  of  taxing  other  kinds  of  stock.  When  there 
is  no  difference  between  the  method  of  taxing  pub- 
lic service  stocks  and  that  of  taxing  other  stocks,  it 
is  not  important  to  state  here  what  kinds  of  service 
that  state  includes  in  the  former  class. 

2.  For  a  more  accurate  definition  see  Wyman  on  Public  Service 
Corporations,  Baker,  Voorhis  &  Co.,  New  York,  1911. 


EXEMPT  AND  TAXABLE  9 

(3)  Insurance  corporation  stock,  of  course,  does 
not  include  shares  in  mutual  insurance  companies. 

(4  and  5)  Manufacturing  and  other  business  cor- 
poration stocks  are  now  exempt  in  many  cases  when 
the  corporation  is  "  located  in  "  or  "  does  business 
in ' '  the  state  levying  the  tax,  even  when  not  incor- 
porated by  that  state.  What  is  meant  by  these 
terms  has  seldom  been  clearly  defined  in  statute  or 
decision,  so  that  the  summaries  on  these  points  must 
often  be  vague  and  unsatifactory.  It  should  be  un- 
derstood however  that  in  the  states  where  the  shares 
in  the  hands  of  the  stockholders  are  exempt  the 
corporation  itself  is  taxed  instead.  This  is  usually 
assessed  by  local  assessors  at  the  head  office  of  the 
company. 

(6)  Unincorporated  associations  include  all  groupa 
of  persons  not  having  a  charter  of  incorporation 
from  the  state  but  doing  business  for  profit,  whose 
ownership  is  evidenced  by  certificates  of  stock. 
These  are  common  in  Massachusetts  under  the 
names  of  voluntary  associations  and  real  estate 
trusts.  Although  closely  resembling  corporations 
in  their  organization,  they  have  received  no  charter 
from  the  state.  In  many  states  a  form  of  business 
organization  is  authorized  and  regulated  by  law 
which,  while  not  technically  a  corporation,  closely 
resembles  it.  These  are  frequently  called  joint- 
stock  associations,  as  in  New  York,  and  under  these 
laws  many  important  associations,  such  as  the  great 
express  companies,  have  been  organized  and  have 
issued  a  large  volume  of  securities.  The  exact  legal 


10  INVESTMENT  SECURITIES 

status  of  this  form  of  organization,  that  is,  whether 
it  partakes  more  of  the  nature  of  corporation  or  of 
the  nature  of  partnership,  is  not  entirely  clear  even 
in  the  jurisdiction  authorizing  such  organizations. 
In  states  other  than  that  in  which  the  association  is 
organized,  the  courts  sometimes  treat  them  as  part- 
nerships, when  at  home  they  are  treated  as  cor- 
porations. 

The  statutes  sometimes  specifically  declare  the 
shares  of  associations  or  joint-stock  companies  to  be 
taxable  like  certificates  of  stock.  In  such  cases  we 
have  made  note  of  this.  Ordinarily,  however,  they 
are  not  expressly  mentioned.  Except  the  New  York 
joint-stock  companies,  they  are  not  common  outside 
of  Massachusetts,  though  the  federal  corporation 
tax  makes  the  extension  of  these  associations  a  prob- 
able development.  It  must  be  understood,  therefore, 
that  our  statements  as  to  the  taxation  of  these  shares 
are  usually  only  estimates  of  probabilities  and  can- 
not be  fully  supported  by  statute  or  decision. 


BONDS  AND  NOTES. 


Bonds  and  notes  closely  resemble  each  other.  The 
distinction  in  the  minds  of  investors  between  them 
is  that  a  bond  is  a  long  term  obligation  while  a  note 
is  a  short  term  obligation,  but  this  distinction  is  not 
accurate.  A  bond  is  usually  a  part  of  the  perma- 
nent capital  of  the  business.  Both  bonds  and  notes 
may  be  either  secured  by  mortgage  or  pledge  of 


EXEMPT  AND  TAXABLE  11 

property  of  the  promisor,  or  may  be  unsecured. 
Municipal  bonds  are  technically  the  obligations  of 
corporations,  because  our  counties,  cities,  and  towns 
are  technically  municipal  corporations.  Other  cor- 
porations are  sometimes  called  private  corporations. 
In  the  scheme  of  this  book,  however,  the  word  ' '  cor- 
poration "  is  used  as  applying  only  to  other  than 
municipal  corporations,  that  is,  it  does  not  apply  to 
counties,  cities,  towns,  or  other  subdivisions  of 
states. 

(7)  United  States  bonds  are  made  by  federal  stat- 
ute entirely  exempt  from  state  and  local  taxation  in 
the  hands  of  the  holder.    (U.  S.  Eev.  St.,  Sec.  3701.) 

To  avoid  constant  repetition  of  the  full  statement 
of  authority  regarding  United  States  bonds  a  ref- 
erence to  this  page  has  been  inserted  in  the  appro- 
priate place  in  the  classification  in  each  state. 

(8)  There  is  a  growing  tendency  on  the  part  of 
the  states  to  exempt  from  taxation  their  own  bonds. 

(9)  Municipal  bonds  are  those  issued  by  the  per- 
manent  subdivisions   of   states,    such   as   counties, 
cities,  and  towns,  and  also  certain  temporary  sub- 
divisions of  states  usually  created  for  the  purpose 
of  constructing  some  public  work,  such  as  drainage 
districts,  water  or  fire  districts. 

(10)  In  the  hands  of  a  citizen  of  some  state  other 
than  that  in  which  they  were  issued,  such  bonds  as 
are  described  in  sections  8  and  9  may  properly  be 
called  foreign  bonds. 

(11)  The  bonds  of  business  corporations  may  be 
secured  or  unsecured,  and  this,  in  some  states,  makes 


12  INVESTMENT  SECURITIES 

a  difference  in  their  taxability,  as  noted  herein. 
What  are  known  as  short  term  notes  of  corpora- 
tions, which  are  really  short  term  bonds  issued 
under  the  provisions  of  some  indenture  of  trust,  are 
included  under  this  section. 

(12  and  13)  No  explanation  seems  necessary  re- 
garding these  familiar  investments. 


BANK  DEPOSITS. 


Bank  deposits  are  technically  obligations  of  the 
bank  to  the  depositor;  that  is,  contracts  to  repay 
him  a  certain  sum  of  money  deposited.  It  seems 
wise  to  include  in  this  book  an  explanation  of  the 
tax  laws  upon  such  deposits  in  order  that  the  in- 
vestor may  be  able  to  make  comparisons  between 
the  taxation  of  securities,  more  properly  so-called, 
and  the  burden  on  the  same  amount  of  money  de- 
posited in  a  bank  of  discount  or  in  a  savings  bank. 
In  section  15  the  title  *  *  banks  ' '  of  course  includes 
"  trust  companies." 

DEDUCTION  OF  DEBTS. 

In  many  states  the  owner  of  obligations,  such  as 
bonds,  notes,  or  bank  deposits,  may  deduct  there- 
from the  value  of  any  interest-bearing  debts  which 
he  owes  and  return  for  taxation  only  the  balance. 
Where  this  is  permitted  a  note  to  that  effect  has 
been  inserted  in  our  summary.  We  have  not  at- 
tempted to  go  into  details  on  this  important  subject 


EXEMPT  AND  TAXABLE  13 

because  there  is  a  large  volume  of  law  defining  the 
statutes  which  would  exceed  the  limitations  of  our 
space.  The  general  principle  is  that  debts  may  be 
deducted  from  credits.  There  is  great  diversity  of 
interpretation  as  to  what  is  a  credit.  A  few  states 
allow  deduction  of  debts  from  all  securities.  Very 
frequently  the  right  is  qualified  so  as  to  prevent  a 
purchase  of  non-taxables  on  credit  or  other  devices 
to  create  such  a  set-off  and  thus  reduce  taxes. 
In  any  case,  where  the  question  is  of  importance, 
the  statute  and  decisions  should  be  examined.  In 
some  states  where  credits,  such  as  notes,  bonds, 
or  bank  deposits  are  taxed,  the  average  for  a 
whole  year  is  taxed  instead  of  the  amount  owned  on 
a  certain  day.  We  have  not  attempted  to  distin- 
guish these  cases. 

Income  taxes  on  the  income  from  property  are  not 
common.  Some  of  those  that  are  levied  fall  on  the 
income  from  property  otherwise  exempt.  It  is  im- 
portant, therefore,  to  make  note  of  such  laws. 

In  general,  it  should  be  borne  in  mind  that  the 
letter  of  the  law  regarding  taxation  of  intangibles 
is  seldom  enforced  with  any  degree  of  effectiveness 
or  uniformity  in  those  states  which  employ  this 
method  of  raising  revenue,  so  that  the  exact  local 
situation  cannot  be  grasped  from  a  study  of  the 
written  law.  In  many  other  states  the  courts  have 
interpreted  the  law  so  as  practically  to  exempt  all 
stock  from  taxation.  In  order  to  approximate  the 
actual  local  practice,  we  have  corresponded  with  the 
taxing  officers  of  all  the  states,  and,  when  possible, 


14  INVESTMENT  SECURITIES 

have  obtained  their  unofficial  approval  of  our  sum- 
maries. In  some  instances  we  are  unable  to  find 
statutes  or  decisions  to  support  what  they  have 
stated  as  the  local  practice.  We  are  indebted  for 
criticism  and  other  assistance  to  public  officials  or 
attorneys  in  all  the  states. 


ALABAMA. 


STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable  to  the  holder,  the  bank  to  pay  the 

tax. 
(Gen.  Laws  1911,  p.  177,  Sec.  25.) 

(b)  Alabama  banks. 

Taxable  to  the  holder,  the  bank  to  pay  the 

tax.    (See  note  at  end  of  Sec.  5.) 
(Gen.  Laws  1911,  p.  177,  Sec.  25.) 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Gen.  Laws  1911,  p.  177,  Sec.  25.) 

(d)  Building  and  loan  associations. 

Taxable  to  the  holder,  the  association  to  pay 

the  tax. 
(Gen.  Laws  1911,  p.  177,  Sec.  25.) 

Sec.  2.    Public  Service  Corporation  Stocks. 

(a)  Alabama  corporations. 

Exempt.     (See  note  at  end  of  Sec.  5.) 
(Code  1907,  Sec.  2082,  Par.  9.) 

(b)  Corporations  other  than  Alabama  corporations. 

Taxable. 

(Code  1907,  Sec.  2060,  Cl.  2,  Sec.  2082,  Cl.  9.) 
[15] 


16  INVESTMENT  SECURITIES 

Sec.  3.    Insurance  Corporation  Stocks. 

(a)  Alabama  corporations. 

Exempt.    (See  note  at  end  of  Sec.  5.) 
(Code  1907,  Sec.  2082,  Cl.  9.) 

(b)  Corporations  other  than  Alabama  corporations. 

Taxable. 

(Code  1907,  Sec.  2060,  Cl.  2,  Sec.  2082,  Cl.  9.) 

Sec.  4.    Manufacturing  Corporation  Stocks. 
(a)  Alabama  corporations. 

Exempt.     (See  note  at  end  of  Sec.  5.) 
(Code  1907,  Sec.  2082,  Cl.  9.) 

Special  exemption  applicable  lo  stock  in  cor- 
porations whether  domestic  or  foreign, 
(w)  Capital  stock  in  companies  which  are 
engaged  in  building  and  operating 
factories  for  the  spinning  of  thread 
and  yarn,  the  weaving  of  cloth  and 
other  fabrics  in  cotton  and  wool  in 
the  state,  and  plants  for  the  purposes 
of  building  ships,  may  be  exempt, 
upon   application  by  the   company, 
from  county  and  municipal  taxes  for 
five  years  from  date  of  organization. 
(Code  1907,  Sees.  2062-3.) 

(x)  Any  company  organized  for  the  pur- 
pose of  developing  hydro-electric 
power  for  the  use  of  the  public  shall 
be  exempt  from  all  state,  county,  and 
municipal  taxes  until  ten  years  from 


EXEMPT  AND  TAXABLE — ALABAMA  17 

beginning  of  construction.  This  is 
not  to  apply  to  such  plants  already 
developed.  Date  of  Act  July  27, 
1907. 

(Code  1907,  Sec.  2069.) 

(y)  Calcium  Cyanamid  (Lime  Nitrogen) 
manufactories  are  exempt  from  tax- 
ation until  ten  years  after  beginning 
of  construction. 

(Code  1907,  Sec.  2070.) 

(z)  Any  company  which  has  patented  or 
owns  exclusively  or  shall  hereafter 
patent  and  own  exclusively  the  pat- 
ent right  of  any  articles  designed 
for  the  purpose  of  protecting  human 
life  and  property,  which  article  has 
not  heretofore  been  manufactured 
for  sale,  shall  be  exempt  for  a  period 
of  ten  years  from  August  9,  1907, 
from  taxation  upon  all  its  property 
devoted  exclusively  to  the  manufac- 
ture of  such  article,  etc.,  and  the 
stock  of  the  stockholders  of  such  cor- 
porations shall  be  exempt  for  said 
period  of  ten  years. 

(Code  1907,  Sec.  2073.) 
(b)  Corporations  other  than  Alabama  corporations. 

Taxable  unless  included  in  classes  w,  x,  y,  or 

z  under  Sec.  4a  above. 
(Code  1907,  Sec.  2060,  Cl.  2,  Sec.  2082,  Cl.  9.) 
2 


18  INVESTMENT  SECURITIES 

Sec.  5.    Other  Business  Corporation  Stocks. 

(a)  Alabama  corporations. 

Exempt.    (See  note  at  end  of  this  section.) 
(Code  1907,  See.  2060,  Cl.  2.) 

(b)  Corporations  other  than  Alabama  corporations. 

Taxable. 

(Code  1907,  Sec.  2060,  Cl.  2.) 

NOTE. —  The  same  rules  apply  to  all  four  classes  of 
stock  (viz.,  Sees.  2,  3,  4,  and  5).  If  incorporated 
under  the  laws  of  Alabama  the  stock  is  technically  tax- 
able to  the  shareholder,  but  the  corporation  is  obliged 
to  pay  the  tax  for  him  and  in  practice  charges  it  in 
with  other  expenses  and  does  not  directly  collect  it 
from  the  shareholder,  so  that  the  stock  in  the  hands  of 
the  holder  is  really  exempt  by  statute. 
(Code  1907,  Sec.  2082,  Cl.  9.) 

Stock  in  all  companies  incorporated  outside 
Alabama  is  taxable  to  the  holder  (Code  1907,  Sees. 
2060,  2082,  Cl.  9.  See  also  State  v.  Kidd,  125  Ala. 
413),  but  in  practice  it  is  hardly  ever  assessed. 

Stock  in  certain  manufacturing  companies  above 
specified  doing  business  in  Alabama  is  wholly  exempted 
even  from  the  tax  paid  by  the  corporation. 

The  court  has  decided  that  where  a  corporation 
owns  bonds  that  are  exempt,  it  is  entitled  to  a  credit  to 
that  extent  against  the  value  of  its  shares  taxed  to  the 
holder.  Under  this  it  is  possible  for  an  insurance 
company  or  a  bank  to  escape  the  entire  tax  on  its 
shares. 

Sec.  6.    Unincorporated  Association  Stocks. 

Such  shares  are  uncommon  in  Alabama  and 
the  exact  application  of  existing  tax  laws 
is  uncertain.  If  regarded  as  property,  as 


EXEMPT  AND  TAXABLE — ALABAMA  19 

distinguished  from  tHe  property  of  the  as- 
sociation, after  the  analogy  of  corporation 
stocks,  they  would  be  taxable  under  Code 
1907,  Sec.  2060.  Regarded  merely  as  part- 
nerships the  property  of  the  association 
would  be  taxed  to  the  firm  and  not  to  the 
shareholders. 


BONDS. 


Sec.  7.    United  States  Bonds. 

Exempt.     (See  p.  11.) 

Sec.  8.    Alabama  State  Bonds. 

Exempt. 

(Gen.  Laws  1911,  p.  172,  Sec.  13.) 

Sec.  9.    Alabama  Municipal  Bonds, 

Exempt. 

(Gen.  Laws  1911,  p.  172,  Sec.  13.) 

Sec.  10.  State  and  Municipal  Bonds  of  other  States 

and  Countries. 
Taxable. 

(Code  1907,  Sec.  2082,  Cl.  11.) 

Sec.  11.    Corporation  Bonds. 

Taxable,  (but  see  Sec.  12  below). 
(Code  1907,  Sec.  2082,  Cl.  11.) 


20  INVESTMENT  SECURITIES 

NOTES. 


Sec,  12.    Notes  Secured  by  Real  Estate  Mortgages. 
Exempt,  if  land  mortgaged  is  in  the  state, 
and  if  instrument  to  secure  payment  of 
the  note  is  recorded,  and  the  recording 
tax  paid  as  provided  by  law. 
(Code  1907,  Sec.  2082,  Cl.  7,  A-D.) 
(Gen.  Acts  1911,  p.  173,  Sec.  14.) 

Otherwise  they  are  taxable. 

(Code  1907,  Sees.  2060,  2082,  Cl.  7  (i).) 

Sec.  13.    Commercial  Paper. 
Taxable. 

(Code  1907,  Sees.  2060  and  2082,  Cl.  7  (i).) 


Sees. 


BANE  DEPOSITS. 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  Alabama  Banks. 

16.  Deposits  in  Alabama  Savings  Banks. 

17.  Deposits  in  Banks  Located  Outside  Ala- 

bama. 
Exempt. 

(Gen.  Laws  1911,  p.  172,  Sec.  13.) 


ARIZONA. 

STOCKS. 

Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable,  but  the  tax  is  paid  by  the  bank. 

(Civil  Code,  Sees.  3837,  3838,  3839.) 

(b)  Arizona  banks. 

Taxable,  but  the  tax  is  paid  by  the  bank. 
(Civil  Code,  Sec.  3837.) 

(c)  Banks  of  other  states  and  countries. 

Taxable  if  the  bank  is  located  in  Arizona, 

otherwise  exempt. 
(Civil  Code,  Sec.  3837.) 

(d)  Building  and  loan  associations. 

Taxable  whether  incorporated  under  the  laws 

of  Arizona  or  elsewhere. 
(Civil  Code,  Sec.  3837;  Const.,  Art.  14,  Sec.  1.) 

'2.    Public  Service  Corporation  Stocks. 
g          3.    Insurance  Corporation  Stocks. 

4.  Manufacturing  Corporation  Stocks. 

5.  Other  Business  Corporation  Stocks. 
r  (b)  Corporations  other  than  Arizona  corporations. 
\  (a)  Arizona  corporations. 

Exempt  if  all  the  property  of  the  corpora- 
tion is  located  in  Arizona,  otherwise  tax- 
able. It  makes  no  difference  where  the 

[21] 


22  INVESTMENT  SECURITIES 

corporation    gets    its    charter,    that    is, 
whether  it  is  domestic  or  foreign. 
(Civil  Code,  Sec.  3837.) 

Sec.  6.    Unincorporated  Association  Stocks. 
Same  as  Sec.  5. 

(Const.,  Art.  14,  Sec.  1.) 
Except  banking  associations,  which  would  be 

treated  like  banking  corporations. 
(Civil  Code,  Sec.  3837.) 


BONDS. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 

Sec.  8.    Arizona  State  Bonds. 

Exempt. 

(Const.,  Art.  9,  Sec.  2.) 

Sec.  9.    Arizona  Municipal  Bonds. 

Exempt. 

(Const,  Art.  9,  Sec.  2.) 

Sec.  10.    State  and  Municipal  Bonds  of  Other  States 

and  Countries. 
Taxable. 

(Civil  Code,  Sec.  3834.) 

Sec.  11.    Corporation  Bonds. 

Taxable. 

(Civil  Code,  Sec.  3834.) 


EXEMPT  AND  TAXABLE — ARIZONA  23 

NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 

Taxable  whether  the  real  estate  is  located  in 

Arizona  or  elsewhere. 
(Civil  Code,  Sec.  3834.) 

NOTE. —  Sec.  3834  also  states  however  that  nothing 
therein  "shall  be  construed  to  require  or  permit 
double  taxation.''  This  has  not  yet  been  construed. 

Sec.  13.    Commercial  Paper. 

Taxable.     (See  note  after  Sec.  17.) 
(Civil  Code,  Sec.  3835.) 


Sees. 


BANK  DEPOSITS. 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  Arizona  Banks. 

16.  Deposits  in  Arizona  Savings  Banks. 

17.  Deposits    in    Banks    Located    Outside 

Arizona. 
Taxable. 

(Const.,  Art.  9,  Sec.  2.) 

NOTE.—  By  Civil  Code,  Sec.  3835,  "  Whenever  sol- 
vent debts  are  assessed,  the  person  assessed  may  de- 
duct therefrom  his  liabilities." 


ARKANSAS. 


STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable.    Tax  to  be  paid  by  the  bank  on  be- 
half of  the  holder. 

(Kirby's  Digest   of  the   Statutes,   1904,   Sees.   6919- 
6923;  Bank  v.  Board,  92  Ark.  344,  122  S.  W.  988.) 

(b)  Arkansas  banks. 

Taxed  in  the  same  manner  as  national  banks. 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Kirby's   Digest   of  the   Statutes,   1904,   Sees.   6872, 
6873,  6910.) 

(d)  Building  and  loan  associations. 

Only  the  unredeemed  shares  of  such  stock,  or 
those  not  transferred  to  the  association 
are  taxed  —  these  to  the  owner. 
(Kirby's  Digest  of  the  Statutes,  1904,  Sec.  6935.) 

Sec.  2.    Public  Service  Corporation  Stocks. 

(a)  Arkansas  corporations. 

Exempt. 

(Kirby's  Digest   of  the   Statutes,   1904,   Sees.   6902, 
6929-31;  Kirby's  Digest,   Supp.  1911,   Sees.  6929, 
6936.     See  also  Dallas  County  v.  Insurance  Com- 
pany, 133  S.  W.  1113.) 
[24] 


EXEMPT  AND  TAXABLE  — AEKANSAS  25 

(b)  Corporations  other  than  Arkansas  corporations. 

Taxable,  except  railroad,  sleeping,  dining  or 
private  car  companies,  express  or  tele- 
graph companies  which  are  doing  busi- 
ness in  Arkansas,  the  stock  of  which  is 
exempt  in  the  hands  of  the  holder,  for  it 
must  be  returned  by  the  company  for  tax- 
ation. 

(Kirby's  Digest  of  the  Statutes,  1904,  Sees.  6872, 
6873,  6902,  6910,  6929-31.) 

{3.    Insurance  Corporation  Stocks. 
4.    Manufacturing  Corporation  Stocks. 
5.    Other  Business  Corporation  Stocks. 

(a)  Arkansas  corporations. 

Exempt. 

(Kirby's  Digest  of  the  Statutes,  1904,  Sees.  6902, 
6910;  Kirby's  Digest,  Supp.  1911,  Sec.  6882; 
Dallas  County  v.  Banks,  87  Ark.  488,  113  S.  W. 
37.) 

(b)  Corporations  other  than  Arkansas  corporations. 

Taxable,  unless  the  corporation  is  doing  busi- 
ness within  this  state,  when  its  stock  is 
exempt  in  the  hands  of  the  holder. 
(Kirby's  Digest,  1904,  Sees.  6872,  6873,  6906,  6910; 
Kirby's  Digest,  Supp.  1911,  Sec.  6882.) 

Sec.  6.    Unincorporated  Association  Stocks. 

Shares  of  unincorporated  associations  which 

are  transferable  without  the  consent  of 

the   other  partners  or  stockholders  are 

treated  the  same  as  those  of  corporations. 

(Kirby's  Digest,  1904,  Sees.  6872,  6906.) 


26  INVESTMENT  SECURITIES 

BONDS. 


Sees.  , 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 

8.  Arkansas  State  Bonds. 

9.  Arkansas  Municipal  Bonds. 

10.  State  and  Municipal  Bonds  of  Other 

States  and  Countries. 

11.  Corporation  Bonds. 

Taxable. 

(Kirby's  Digest,  1904,  Sees.  6872-3.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 
Taxable  whether  the  real  estate  is  in  Arkansas 

or  elsewhere. 

(Kirby's     Digest,     1904,     Sees.     6872-3.     See     also 
Ouachita  v.  Rumph,  43  Ark.  525.) 

Sec.  13.    Commercial  Paper. 
Taxable.     (See  citations  under  Sec.  12.) 


BANK  DEPOSITS. 


Sees. 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  Arkansas  Banks. 

16.  Deposits  in  Arkansas  Savings  Banks. 

17.  Deposits    in    Banks    Located    Outside 

Arkansas. 


EXEMPT  AND  TAXABLE  — ARKANSAS  27 

Taxable  under  the  general  head  of  credits. 

(Kirby's  Digest,  1904,   Sees.  6872-3.) 

NOTE. —  The  term  "  credits  "  is  defined  as  meaning 
"excess  of  the  sum  of  all  legal  claims  and  demands 
whether  for  money  or  other  valuable  things  or  for 
labor  or  services  due  or  to  become  due  to  the  person 
liable  to  pay  taxes  thereon,  *  *  over  and  above 
the  sum  of  legal  bona  fide  debts  owing  by  such 
person  *  *  *." 


CALIFORNIA. 


STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable,  but  the  tax  is  paid  by  the  bank.    De- 
ductions are  allowed  for  investment  in 
real  estate  by  the  bank. 
(Statutes,  1911,  Ch.  335,  Sec.  4.) 

(b)  California  banks. 

Same  as  national  banks. 

(Statutes,  1911,  Ch.  335,  Sec.  4.) 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Const.  Art.  13,  Sec.  14-c. 
Pol.  Code,  Sees.  3607,  3617.) 

(d)  Building  and  loan  associations. 

Exempt. 

(Pol.  Code,  Sees.  3608  and    3617  [sixth].) 

(2.    Public  Service  Corporation  Stocks. 
3.    Insurance  Corporation  Stocks. 
4.    Manufacturing  Corporation  Stocks. 
,  5.    Other  Business  Corporation  Stocks. 

(a)  California  corporations. 

(b)  Corporations  other  than  California  corporations. 

If  the  corporation  is  doing  business  in  Cali- 
fornia so  that  its  property  or  capital  can 

[28] 


EXEMPT  AND  TAXABLE  —  CALIFORNIA  29 

be  taxed  there,  the  shares  are  exempt  in 
the  hands  of  the  holder.    If  the  corpora- 
tion is  not  doing  business  in  California, 
its  stock  is  taxable  to  the  holder. 
(Const.,    Art.    13,    Sec.    14,    Pol.    Code,    Sees.    3607, 

3608,  3617,  3628,  3641,  3663.) 
In  practice  hardly  any  stocks  of  any  kind  are 
taxed  in  California. 

Sec.  6.    Unincorporated  Association  Stocks. 

Exempt  in  practice. 

(There  are  no  express  authorities,  but  see  citations 
above.)  

BONDS. 


Sec.  7.    United  States  Bonds. 

Exempt.     (See  p.  11.) 

Sec.  8.    California  State  Bonds. 

Exempt.     (But  see  Note  after  Sec.  9.) 
(Const.,  Art.  13,  Sec.  1%.) 

Sec.  9.    California  Municipal  Bonds. 

Exempt. 

(Const.,  Art.  13,   Sec.  1%.) 

NOTE. —  By  the  constitutional  amendment  of  1902 
above  cited,  state  and  municipal  bonds  thereafter  issued 
were  made  exempt.  In  practice  now  all  California 
state  and  municipal  bonds  are  exempt. 

Sec.  10.    State  and  Municipal  Bonds  of  Other  States 

and  Countries. 
Taxable. 

(Pol.  Code,  Sees.  3607,  3617.) 


30  INVESTMENT  SECURITIES 

Sec.  11.    Corporation  Bonds. 

Mortgage  bonds  of  corporations  whose  prop- 
erties are  taxed  in  the  state  are  exempt. 
(Const.,  Art.  13,  Sec.  1.) 
Other  bonds  are  taxable. 

(Const.,  Art.  13,  Sec.  1,  Pol.  Code,  Sees.  3607,  3617.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 

Exempt  whether  the  real  estate  is  in  Cali- 
fornia or  elsewhere. 

(Const.,  Art.  13,  Sec.  1,  superseding  Pol.  Code,  Sec. 
3617,  Div.  2,  Subdivision  3,  and  Sec.  3627,  and  72 
Cal.  34.) 

Sec.  13.    Commercial  Paper. 

Taxable  (but  see  note  after  Sec.  17). 

(Pol.  Code,  Sees.  3607  and  3617,  and  Const,  Art.  13, 
Sec.  1,  superseding  51  Cal.  243,  and  Id.  471.) 


BANK  DEPOSITS. 


Sec.  14.    Deposits  in  National  Banks. 

Taxable  (but  see  note  after  Sec.  17). 
(Pol.   Code,   Sees.   3607,   3617.) 

Sec.  15.    Deposits  in  California  Banks. 

Taxable  (but  see  note  after  Sec.  17). 
(Pol.  Code,  Sees.  3607,  3617.) 


EXEMPT  AND  TAXABLE  —  CALIFOKNIA  31 

Sec.  16.    Deposits  in  California  Savings  Banks. 

Exempt. 

(Pol.  Code,  Sec.  3617  (sixth).) 

Sec.  17.    Deposits  in  Banks  Located  Outside  Cali- 
fornia. 

Taxable. 

(Pol.  Code,  Sees.  3607,  3617.    But  see  Note.) 

NOTE. —  In  assessing  solvent  credits  not  secured  by 
mortgage  or  pledge,  a  deduction  is  made  for  debts 
due  to  bona  fide  residents  of  the  state. 
(Pol.  Code,  Sec.  3628.) 


COLORADO. 


STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable,  but  the  bank  pays  the  tax  for  the 

holder. 
(Rev.  Stat.,  Sees.  5659,  5753,  5754.) 

(b)  Colorado  banks. 

Same  as  national  banks. 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Const,  Art.  10,  Sec.  6.) 

This  also  includes  unincorporated  banking  as- 
sociations. 
(Rev.  Stat.,  Sec.  4654.) 

(d)  Building  and  loan  associations. 

Taxable. 

(Rev.  Stat.,  Sees.  4654,  5611,  5659,  5754,) 

But  in  this   case  the  holder  pays   the  tax. 

(See  Sec.  5611  supra.) 
(See  also  Rev.  Stat.,  Sec.  964.) 

J2.    Public  Service  Corporation  Stocks. 
3.    Insurance  Corporation  Stocks. 
4.    Manufacturing  Corporation  Stocks. 
5.    Other  Business  Corporation  Stocks, 
(a)  Colorado  corporations. 

Exempt. 

(Rev.  Stat.,  Sec.  5687.) 
[32] 


EXEMPT  AND  TAXABLE  —  COLORADO  33 

(b)  Corporations  other  than  Colorado  corporations. 

Taxable   in   practice.      (But   see   note   after 

Sec.  6.) 
(Const.,  Art.  10,  Sec.  G;  Rev.  Stat.,  Sec.  5687.) 

Sec.  6.    Unincorporated  Association  Stocks. 
Same  as  Sec.  5 (a). 

NOTE. —  Revised  Statutes,  Sec.  5687,  provides  that 
corporate  stock,  except  in  the  case  of  banking  cor- 
porations, shall  not  be  taxed.  This  provision  is  un- 
qualified in  its  language,  and  would  seem  to  create  a 
uniform  exemption.  On  the  other  hand,  Constitution, 
Art.  10,  after  enumerating  certain  exemptions,  goes 
on  to  say  (Sec.  6),  "  all  laws  exempting  from  taxa- 
tion, property  other  than  that  hereinbefore  mentioned, 
shall  be  void."  There  are  no  Colorado  decisions 
interpreting  Sec.  5687,  but  it  is  extremely  doubtful 
if  a  broad  construction  would  be  constitutional.  The 
practice  of  most  assessors  is  to  assess  stock  in  foreign 
corporations,  but  the  matter  is  being  litigated  and  is 
not  yet  definitely  settled. 


BONDS. 


Sec.  7.    United  States  Bonds. 

Exempt.     (See  p.  11.) 

18.    Colorado  State  Bonds. 
9.    Colorado  Municipal  Bonds. 
10.    State  and  Municipal  Bonds  of  Other 
States  and  Countries. 
Taxable. 

(Civil  Code,  Sec.  477;  Rev.  Stat.,  Sees.  5540,  5581.) 
3 


34  INVESTMENT  SECURITIES 

Sec.  11.    Corporation  Bonds. 

Taxable,  except  bonds  secured  by  real  estate. 
(Civil  Code,  Sec.  477;  Rev.  Stat.,  Sees.  5540,  5542, 
5581.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 

Exempt  if  the  real  estate  is  in  Colorado,  other- 
wise taxable. 
(Rev.  Stat.,  Sec.  5542.) 

Sec.  13.    Commercial  Paper. 

Taxable. 

(Civil  Code,  Sec.  477;  Rev.  Stat.,  Sees.  5540,  5542, 
5581.) 

But  deduction  of  debts  is  allowed. 
(Rev.  Stat.,  Sec.  5584.) 


BANK  DEPOSITS. 


Sees.  - 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  Colorado  Banks. 

16.  Deposits  in  Colorado  Savings  Banks. 

17.  Deposits    in    Banks    Located    Outside 

Colorado. 

Taxable.    This  applies  to  all  deposits  of  resi- 
dents, wherever  made. 

(Rev.   Sat.,  Sees.  5540,  5542,  5610.     See  also  Rev. 
Stat.,  Sec.  5544.) 


CONNECTICUT. 


STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable,  but  the  tax  is  paid  by  the  bank. 

(G.  S.  1902,  Sees.  2331,  2335.) 

(b)  Connecticut  banks. 

Taxable,  but  the  tax  is  paid  by  the  bank. 

(G.  S.  1902,  Sees.  2331,  2335.) 

(c)  Banks  of  other  states  and  countries. 

Exempt.     (See  note  after  Sec.  5.) 

(d)  Building  and  loan  associations. 

Exempt.     (See  note  after  Sec.  5.) 

12.    Public  Service  Corporation  Stocks. 
3.    Insurance  Corporation  Stocks. 
4.    Manufacturing  Corporation  Stocks. 
5.    Other  Business  Corporation  Stocks. 

f  (a)  Connecticut  corporations. 

1  (b)  Corporations  other  than  Connecticut  corporations. 
Exempt  in  practice. 

NOTE. —  The  statutes  of  Connecticut  exempt  from 
direct  taxation  in  the  hands  of  the  holder  stock  in 
any  corporation  whose  whole  property  is  assessed  *nd 
taxed  in  its  name. 
(G.  S.  1902,  Sec.  2329.) 
[35] 


36  INVESTMENT  SECURITIES 

Also  stock  in  any  foreign  corporation  doing  busi- 
ness and  having  property  in  Connecticut. 
(G.  S.  1902,  Sec.  2328.) 

In  practice  under  the  decision  of  Lockwood  v.  Wes- 
ton,  61  Conn.  212,  shares  of  stock  in  all  other  foreign 
corporations  are  exempt.  So  that  no  shares  of  stock 
are  now  assessed  to  the  holder  in  Connecticut. 

Sec.  6.    Unincorporated  Association  Stocks. 
Exempt  in  practice. 

(Lockwood  v.  Weston,  61  Conn.  212.) 


BONDS. 


Sec.  7.    United  States  Bonds. 

Exempt.     (See  p.  11.) 

Sec.  8.    Connecticut  State  Bonds. 

Taxable  unless  issued  under  a  statute  that  ex- 
pressly provides  for  their  exemption  (but 
see  note  after  Sec.  17). 
(G.  S.  1902,  Sec.  2323.) 

Sec.  9.    Connecticut  Municipal  Bonds. 

Taxable  (but  see  note  after  Sec.  17). 
(G.  S.,  1902,  Sec.  2323.) 

Bonds  issued  by  cities  or  towns  to  aid  cer- 
tain railroads  are  exempt. 
(See  Pub.  Acts  of  1911,  Ch.  184.) 


EXEMPT  AND  TAXABLE  —  CONNECTICUT         37 

Sec.  10.    State  and  Municipal  Bonds  of  Other  States 
and  Countries. 

Taxable  (but  see  note  after  Sec.  17). 
(G.  S.  1902,  Sec.  2323.) 

Sec.  11.    Corporation  Bonds. 

Taxable,  except  bonds  of  railroads  and  street 
railways  operating  in  the  state  (but  see 
note  after  Sec.  17). 

Apparently  the  real  estate  mortgage  exemp- 
tion has  not  been  applied  to  bonds. 
(G.  S.  1902,  Sec.  2323.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 
Mortgages  on  Connecticut  real  estate  are  ex- 
empt up  to  the  assessed  value  of  the  real 
estate. 

(G.  S.  1902,  Sec.  2319.) 

Other  mortgages  are  taxable   (but  see  note 

after  Sec.  17). 
(G.  S.  1902,  Sec.  2323;  39  Conn.  176;  42  Conn.  426.) 

Sec.  13.    Commercial  Paper. 

Taxable  (but  see  note  after  Sec.  17). 
(G.  S.  1902,  Sec.  2323.) 


38  INVESTMENT  SECURITIES 

BANK  DEPOSITS. 


Sec.  14.    Deposits  in  National  Banks. 

Taxable. 

(G.  S.  1902,  Sec.  2323.) 

Sec.  15.    Deposits  in  Connecticut  Banks. 

Exempt  as  to  savings  deposits. 

(Pub.  Acts,  1907,  Ch.  85.) 
Otherwise  taxable. 

(G.  S.  1902,  Sec.  2323.) 

Sec.  16.    Deposits  in  Connecticut  Savings  Banks. 

Exempt. 

(G.  S.  1902,  Sec.  2422.) 

Sec.  17.    Deposits  in  Banks  Located  Outside  Con- 
necticut. 
Taxable. 

(G.  S.  1902,  Sec.  2323.) 

NOTE. —  The  holder  of  bonds,  notes,  or  other  choses 
in  action  may  pay  to  the  State  Treasurer  a  tax  of 
4  mills  per  dollar  of  valuation  per  year  for  from 
one  to  five  years  and  have  the  payment  certified  on 
the  security.  Thereafter  it  is  exempt  from  all  state 
and  local  taxes  for  that  period. 
(G.  S.  1902,  Sec.  2325.) 


DELAWARE. 


There  is  no  statute  providing  for  the  taxation  of 
stocks,  bonds,  notes,  or  deposits,  in  Delaware,  and 
in  practice  none  are  taxed. 


DISTRICT  OF  COLUMBIA. 


There  is  no  statute  providing  for  the  taxation  of 
stocks,  bonds,  notes,  or  deposits,  in  the  District  of 
Columbia,  and  in  practice  none  are  taxed. 

[39] 


FLORIDA. 

STOCKS. 

Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable  in  name  of  holder,  but  the  bank  pays 

the  tax  for  the  stockholder. 
(Acts  1907,  Ch.  5596,  Sec.  8.) 

(b)  Florida  banks. 

Same  as  national  banks. 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Acts  1907,  Ch.  5596,  Sec.  3.) 

(d)  Building  and  loan  associations. 

Taxable. 

(Acts  1907,  Ch.  5596,  Sees  1,  3,   and  5.) 


Sees. 


'  2.    Public  Service  Corporation  Stocks. 
3.    Insurance  Corporation  Stocks. 


4.  Manufacturing-  Corporation  Stocks. 

5.  Other  Business  Corporation  Stocks. 

(a)  Florida  corporations. 

Exempt  (but  see  next  note). 

(Const.,  Art.  XVI,  Sec.  16;  Acts  1907,  Ch.  5596, 
Sees.  8,  10,  16  and  46.  See  also  Gen.  Statutes,  Sec. 
2655.) 

[40] 


EXEMPT  AND  TAXABLE  —  FLOEIDA  41 

(b)  Corporations  other  than  Florida  corporations. 

Taxable. 

(Acts  1907,  Ch.  5596,  Sec.  3.) 

NOTE. —  All  shares  in  corporations  are  taxable  un- 
der the  provisions  of  the  State  Constitution  whether 
the  company  is  incorporated  under  the  laws  of  Florida 
or  of  some  other  state  or  country.  It  is  provided, 
however,  that  if  the  corporation  pays  a  tax  on  all  its 
capital  stock  or  property  its  shareholders  need  not 
list  their  shares  for  taxation.  The  practice  varies. 
In  some  instances  stock  in  Florida  corporations  is 
assessed  to  the  corporation  and  in  others  to  the  share- 
holders. Companies  incorporated  under  the  laws  of 
other  states  and  countries,  however,  do  not  pay  a 
capital  stock  tax  and  so  their  shareholders  resident 
in  Florida  are  taxable  on  their  shares.  No  distinction 
is  made  with  reference  to  the  kind  of  business  the 
corporation  is  engaged  in. 

Sec.  6.    Unincorporated  Association  Stocks. 

Treated  the  same  as  corporations. 

(Acts  1907,  Ch.  5596,  Sees.  3,  8.) 


BONDS. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 

Sec.  8.    Florida  State  Bonds. 
No  state  bonds  outstanding. 


42  INVESTMENT  SECURITIES 

J9.    Florida  Municipal  Bonds. 
10.    State  and  Municipal  Bonds  of  Other 
States  and  Countries. 
11.    Corporation  Bonds. 

Taxable. 

(Acts  1907,  Ch.  5596,  Sees.  1  and  3.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 
Taxable  whether  the  real  estate  is  located  in 

Florida  or  elsewhere. 

(Acts  1907,  Ch.  5596,  Sees.  1  and  3.    See  also  Lamar 
v.  Palmer,  18  Fla,  147.) 

Sec.  13.    Commercial  Paper. 
Taxable. 

(See  citations  under  Sec.  12.) 


BANK  DEPOSITS. 


Secs.^ 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  Florida  Banks. 

16.  Deposits  in  Florida  Savings  Banks. 

17.  Deposits    in    Banks    Located    Outside 

Florida. 

All  taxable. 

(Acts  1907,  Ch.  5596,  Sees.  1,  3,  5.) 


GEORGIA. 


STOCKS. 

Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable  to  the  holder  but  the  tax  is  paid  by 
the  bank. 

(Code  1910,  Sec.  991.     See  also  Bank  v.  Savannah, 
Dud.  131.) 

(b)  Georgia  banks. 

Same  as  national  banks. 
(See  citations  under  Sec.  1  (a).) 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Code  1910,  Sees.  1002,  1087.) 

(d)  Building  and  loan  associations. 

Exempt  if  incorporated  under  the  laws  of 

Georgia.    Otherwise  taxable. 
(Code  1910,  Sees.  985,  1087.     See  Ga.,  etc.,  Rd.  v. 
Wrigjit,  125  Ga.  589.) 

•  2.  Public  Service  Corporation  Stocks. 

„          3.  Insurance  Corporation  Stocks. 

4.  Manufacturing  Corporation  Stocks. 

.  5.  Other  Business  Corporation  Stocks. 

(a)  Georgia  corporations. 
Exempt. 

[43] 


4A  INVESTMENT  SECUKITIES 

(b)  Corporations  other  than  Georgia  corporations. 
Taxable. 

NOTE. —  The  same  rules  apply  to  all  four  classes 
of  stocks  (viz.,  2,  3,  4,  and  5).  If  incorporated  under 
the  laws  of  Georgia  the  stock  is  exempt  under  the  de- 
cisions of  its  courts.  (Ga.,  etc.,  Rd.  v.  Wright,  125  Ga. 
589;  City  of  Albany  v.  Brown,  74  S.  E.  518.  See  also 
Code  1910,  Sees.  980,  987,  1087.)  If  incorporated 
under  the  laws  of  any  other  state  or  country  the  stock 
is  taxable.  (Ga.,  etc.,  Rd.  v.  Wright,  124  Ga.  596,  598; 
Code  1910,  Sees.  1002,  1087.) 

Sec.  6.    Unincorporated  Association  Stocks. 

Such  associations  would  probably.be  treated 
like  partnerships  in  practice  and  the  in- 
terests of  the  members  would  not  be  sep- 
arately taxed. 


BONDS. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 

Sec.  8.    Georgia  State  Bonds. 
Exempt. 

(Penick  v.  Foster,  129  Ga.  217.) 

Sec.  9.    Georgia  Municipal  Bonds. 
Exempt. 

(Penick  v.  Foster,  129  Ga.  217.) 


EXEMPT  AND  TAXABLE  —  GEORGIA  45 

Sec.  10.    State  and  Municipal  Bonds  of  Other  States 

and  Countries. 
Taxable. 

(Code  1910,  Sees.  1016,  1087.) 

Sec.  11.    Corporation  Bonds. 

Taxable. 

(Code  1910,  Sees.  1003,  1016,  1087.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 
Taxable  whether  the  real  estate  is  located  in 

Georgia  or  elsewhere. 
(Code  1910,  Sec.  1003.) 

Sec.  13.    Commercial  Paper. 

Taxable. 

(Code  1910,  Sec.  1003.) 


BANK  DEPOSITS. 


Sees. 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  Georgia  Banks. 

16.  Deposits  in  Georgia  Savings  Banks. 

17.  Deposits    in    Banks    Located    Outside 

Georgia. 

Taxable. 

(Code  1910,  Sees.  1002,  1003,  1087.) 


IDAHO. 


STOCKS. 


Sec.  1.    Banks. 

(a)  National  banks. 

Taxable,  but  the  tax  is  paid  by  the  bank.  De- 
duction is  allowed  for  real  estate  owned 
by  the  bank. 

(Rev.  Codes,  Sec.  1672,  as  amended  by  Extra  Session 
Laws  of  1912,  eh.  8.) 

(b)  Idaho  banks. 

Same  as  national  banks. 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Rev.  Codes,  Sees.  1643  and  1646,  as  amended  by  Ex- 
tra Session  Laws  of  1912,  Ch.  8.) 

(d)  Building  and  loan  associations. 

Exempt. 

(Rev.  Codes,  Sees.  1671,  1673.) 

Sec.  2.    Public  Service  Corporation  Stocks, 
(a)  Idaho  corporations. 

Exempt. 

(Rev.  Codes,  Sees.  1654,  1671,  1673,  1710,  1713,  and 
Sec.  1714  as  amended  by  Extra  Session  Laws  of 
1912,  Ch.  8.) 

[46] 


EXEMPT  AND  TAXABLE  —  IDAHO  47 

(b)  Corporations  other  than  Idaho  corporations. 
Taxable. 

(Rev.  Codes,  Sec.  1643,  and  Sec.  1646,  as  amended  by 
Extra  Session  Laws  of  1912,  Ch.  8.) 

Sec.  3.  Insurance  Corporation  Stocks. 

(a)  Idaho  corporations. 

Exempt  if  the  corporation  does  business  in 

the  state;  otherwise  taxable. 
(Rev.    Codes,    Sees.    1643,    2867,   and    Sec.   1646,    as 
amended  as  aforesaid.) 

(b)  Corporations  other  than  Idaho  corporations. 

Same  as  Sec.  3 (a). 

Sec.  4.    Manufacturing  Corporation  Stocks. 

(a)  Idaho  corporations. 

Exempt  if  the  property  or  capital  is  taxed 

within  the  state;  otherwise  taxable. 
(Rev.  Codes,  Sees.  1643,  1671,  1673  and  Sec.  1646,  as 
amended  as  aforesaid.) 

(b)  Corporations  other  than  Idaho  corporations. 

Same  as  Sec.  4 (a). 

Sec.  5.    Other  Business  Corporation  Stocks. 

(a)  Idaho  corporations. 

Same  as  Sec.  4. 

(b)  Corporations  other  than  Idaho  corporations. 

Same  as  Sec.  4. 

Sec.  6.    Unincorporated  Association  Stocks. 

Same  as  Sec.  4. 

(Rev.  Codes,  Sees.  1643,  1671,  1673.) 


48  INVESTMENT  SECTJKITIES 

BONDS. 


Secs.^ 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 

8.  Idaho  State  Bonds. 

9.  Idaho  Municipal  Bonds. 

10.  State  and  Municipal  Bonds  of  Other 

States  and  Countries. 

11.  Corporation  Bonds. 

Taxable. 

(Rev.  Codes,  Sec.  1643,  and  Sec.  1646,  as  amended  as 
aforesaid.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 
Exempt  whether  the  real  estate  is  in  Idaho  or 

elsewhere. 

(Rev.  Codes,  Sec.  1644,  as  amended  by  Extra  Session 
Laws  1912,  Ch.  8.) 

Sec.  13.    Commercial  Paper. 

Taxable. 

(Rev.  Codes,  Sec.  1643,  and  Sec.  1646,  as  amended  as 
aforesaid.) 


EXEMPT  AND  TAXABLE  —  IDAHO  49 

DEPOSITS. 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  Idaho  Banks. 

Secs.^j  16.    Deposits  in  Idaho  Savings  Banks. 

17.    Deposits    in    Banks    Located    Outside 
Idaho. 

Taxable. 

(Rev.  Codes,  Sec.  1643,  and  Sec.  1646,  as  amended  as 
aforesaid,  and  Sec.  1682.) 

NOTE. — Deduction  of  debts  from  credits  is  allowed. 
(Rev.   Codes,   Sees.  1653   and  1683,   as  amended  by 
Extra  Session  Laws  of  1912,  Ch.  8.) 

4 


ILLINOIS. 

STOCKS. 

Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable  to  the  holder  but  the  bank  may  pay 
the  tax  and  must  retain  the  amount  of 
the  tax  from  the  dividend  until  it  shall 
appear  that  the  tax  has  been  paid. 
(R.  S.  1911,  Ch.  120,  Sees.  35-39.) 

(b)  Illinois  banks. 

Same  as  national  banks. 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(R.  S.  1911,  Ch.  120,  Sec.  1.) 

(d)  Building  and  loan  associations. 

Taxable. 

(R.  S.  1911,  Ch.  120,  Sec.  29.  See  also  Matter  of 
St.  Louis,  etc.,  Investment  Co.,  194  111.  609,  de- 
claring that  the  proviso  of  Sec.  29  (a-d)  exempting 
pledged  stock  of  building  and  loan  associations  is 
unconstitutional. ) 

2.  Public  Service  Corporation  Stocks. 

3.  Insurance  Corporation  Stocks. 

4.  Manufacturing  Corporation  Stocks. 

5.  Other  Business  Corporation  Stocks. 

(a)  Illinois  corporations. 

Exempt. 

(R.  S.  1911,  Ch.  120,  Sees.  3,  32-34,  and  108.) 
[50] 


Sees. 


EXEMPT  AND  TAXABLE  —  ILLINOIS  51 

(b)  Corporations  other  than  Illinois  corporations. 
Taxable. 

(R.  S.  1911,  Ch.  120,  Sees.  1,  6,  25,  and  312.) 

Sec.  6.    Unincorporated  Association  Stocks. 

Treated  like  shares  in  corporations. 
(R.  S.  1911,  Ch.  120,  Sees.  1,  3,  6,  25.) 


BONDS. 


Sees. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 

r   8.    Illinois  State  Bonds. 
9.    Illinois  Municipal  Bonds. 

10.  State  and  Municipal  Bonds  of  Other 

States  and  Countries. 

11.  Corporation  Bonds. 

Taxable. 

(R.  S.  1911,  Ch.  120,  Sees.  1,  3,  6,  20,  25,  and  312.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 
Taxable  whether  the  real  estate  is  located  in 

Illinois  or  elsewhere. 
(R.  S.  1911,  Ch.  120,  Sees.  1,  3,  6,  21,  25,  and  312.) 

Sec.  13.    Commercial  Paper. 

Taxable. 

(See  citations  under  Sec.  12.) 


52  INVESTMENT  SECURITIES 

BANK  DEPOSITS. 


Sees.  < 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  Illinois  Banks. 

16.  Deposits  in  Illinois  Savings  Banks. 

17.  Deposits    in    Banks    Located    Outside 

Illinois. 

Taxable  under  head  of  credits. 

(R:  S.  1911,  Ch.  120,  Sees.  1,  3,  6,  24,  25,  27,  28,  312. 
See  also  Durbin  v.  People,  54  111.  App.  101.) 
NOTE. — A  deduction  of  debts  from  credits  is  allowed. 
(R.  S.  1911,  Ch.  120,  Sees.  27-28.) 


INDIANA. 

STOCKS. 

Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable  to  the  holder,  but  the  bank  pays  the 
tax  and  deducts  from  dividends.  Deduc- 
tion may  be  made  for  the  value  of  the  real 
estate  taxed  to  the  bank. 

(Burns'  Annotated  Statutes  Revision  of  1908,   Sees. 
10,143,  10,160,   10,208-10,215.) 

(b)  Indiana  banks. 

Same  as  national  banks. 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Burns'  Annotated  Statutes  Revision  of  1908,  Sees. 
10,142,  10,143,  10,199,  and  10,202.) 

(d)  Building  and  loan  associations. 

Taxable  —  except  such  as  are  held  by  borrow- 
ers, which  are  exempt  to  the  extent  of 
the  amount  borrowed. 

(Burns'  Annotated  Statutes  Revision  of  1908,  Sees. 
10,202,  10,250;  Deniston  v.  Terry,  141  Ind.  677,  41 
N.  E.  143;  Co-op.  Association  v.  State,  156  Ind.  463, 
60  N.  E.  146;  State  v.  Real  Estate,  etc.,  Associa- 
tion, 152  Ind.  278,  51  N.  E.  1061;  State  v.  Brackett, 
141  Ind.  702,  41  N.  E.  145.) 
[53] 


54  INVESTMENT  SECURITIES 

Sec.  2.    Public  Service  Corporation  Stocks. 

(a)  Indiana  corporations. 

Exempt  unless  the  corporation  has  all  its  prop- 
erty outside  the  state  and  is  not  taxed  on 
its  capital  stock  in  Indiana  in  which  case 
its  shares  are  taxable  to  the  holder. 
(Burns'  Annotated  Statutes  Revision  of  1908,  Sees. 
10,143,  10,161,  10,199,  10,202.  10,217-10,222,  10,226, 
10,233-10,234,  10,236-10,249.) 

(b)  Corporations  other  than  Indiana  corporations. 

Taxable. 

(Burns'  Annotated  Statutes  Revision  of  1908,  Sees. 
10,143,  10,199,  10,202;  Cook  v.  Board,  92  N.  E. 
877.) 

3.    Insurance  Corporation  Stocks. 
Sees.  -  4.    Manufacturing  Corporation  Stocks. 
.  5.    Other  Business  Corporation  Stocks, 
(a)  Indiana  corporations. 

Exempt  unless  the  corporation  has  all  its  prop- 
erty outside  the  state  and  is  not  taxed 
on  its  capital  stock  in  Indiana  in  which 
case  its  shares  are  taxable  to  the  holder. 
(Burns'  Annotated  Statutes  Revision  of  1908,  Sees. 
10,143,  10,161, 10,199, 10,202,  10,233-10,234.) 

(t>)  Corporations  other  than  Indiana  corporations. 

Taxable. 

(Burns'  Annotated  Statutes  Revision  of  1908,  Sees. 
10,143,  10,199,  10,202.) 

Sec.  6.    Unincorporated  Association  Stocks. 

Exempt. 

(Bums'  Annotated  Statutes  Revision  of  1908,  Sees.  10,- 
143,  10,162;  State  Board  v.  Holliday,  150Ind.216.) 


EXEMPT  AND  TAXABLE  —  INDIANA  55 

BONDS. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  page  11.) 

Sec.  8.    Indiana  State  Bonds. 
Exempt  if  issued  since  April  23,  1903,  other- 
wise taxable. 

(Burns'   Annotated   Statutes  Revision   of  1908,   Sec. 
10,156.) 

Sec.  9.    Indiana  Municipal  Bonds. 

Same  as  state  bonds. 

Sec.  10.    State  and  Municipal  Bonds  of  Other  States 

and  Countries. 
Taxable. 

(Burns'  Annotated   Statutes  Revision  of  1908,   Sees. 
10,142,  10,143,  10,199,  10,202.) 

Sec.  11.    Corporation  Bonds. 

Taxable. 

(See  citations  under  Sec.  10.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 
Taxable  whether  the  real  estate  is  in  Indiana 

or  elsewhere. 

(Burns'  Annotated  Statutes  Revision  of  1908,  Sees. 
10,142-10,143,  10,199,  10,202;  Stephen  v.  Smith,  30 
Ind.  App.  120,  65  N.  E.  287.  See  also  Acts  of 
1907,  Ch.  25.) 


56 


INVESTMENT  SECURITIES 


Sec.  13.    Commercial  Paper. 

Taxable. 

(See  citations  under  Sec.  12.) 


Sees. . 


BANK  DEPOSITS. 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  Indiana  Banks. 

16.  Deposits  in  Indiana  Savings  Banks. 

17.  Deposits    in    Banks    Located    Outside 

Indiana. 

(Burns'  Annotated  Statutes  Revision  of  1908,   Sees. 

10.142,  10,143,  10,199,  10,202.) 

Taxable. 

NOTE. —  The  provisions  as  to  deduction  of  debts 
owing  by  the  taxpayer  are  to  the  following  effect: 
From  the  following  items  of  taxable  property,  annui- 
ties, bonds,  notes  secured  by  mortgage,  other  notes, 
accounts,  shares  of  stock  in  building  and  loan  asso- 
ciations, and  all  other  accounts  (except  moneys  de- 
posited with  banks,  firms,  corporations,  and  individu- 
als), he  may  deduct  the  value  of  all  notes  and  accounts 
owing  by  him. 
(Burns'  Annotated  Statutes  Revision  of  1908,  Sees. 

10.143,  10,202.) 


IOWA. 

STOCKS. 

Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable.     Deduction  is  allowed  for  capital 
actually  invested  in  real  estate  owned  by 
the  bank. 
(Session  Laws,  1911,  Ch.  63,  Sec.  4.) 

(b)  Iowa  banks. 

Taxable.     Deduction  is  allowed  for  capital 
actually  invested  in  real  estate  owned  by 
the  bank. 
(Session  Laws  1911,  Ch.  63,  Sees.  4,  5.) 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Iowa  Code,  Sec.  1308.    See  also  137  Iowa,  24.) 

(d)  Building  and  loan  associations. 

Taxable. 

(Iowa  Code,  Sees.  1308,  1310,  1323;  125  Iowa,  148. 
Deduction  of  debts  is  allowed.  Code,  Sec.  1311. 
In  150  Iowa,  677,  it  was  held  that  deduction  of 
debts  was  allowed  from  shares  of  stock  only  in  the 
case  of  building  and  loan  associations.) 
[57] 


58  INVESTMENT  SECURITIES 

Sec.  2.    Public  Service  Corporation  Stocks. 

(a)  Iowa  corporations. 

The  shares  are  taxable  for  the  balance,  after 
the  property  has  been  taxed.  (But  see 
note  after  Sec.  17.) 

(Iowa  Code,  Sees.  1308,  1310,  1313,  1323,  1343.) 
The  capital  stock  of  express  companies  is  taxed 
directly  to  the  corporation,  and  the  shares  as  such 
are  exempt.  (Code  Suppl.,  Sec.  1346-a).  Shares 
in  telephone  and  telegraph,  companies  are  expressly 
exempt.  (Code  Suppl.,  Sec.  1330-g.)  The  same  is 
true  of  railroad  stock.  (Code  Suppl.,  Sec.  1342-g.) 
In  all  cases  where  corporate  shares  are  taxed,  the  cor- 
poration pays  the  tax  for  the  holder,  and  may  re- 
cover it  from  the  shareholder,  and  this  applies  to 
all  kinds  of  domestic  corporations.  (Code,  Sec. 
1325.)  Deduction  is  allowed  for  real  estate  owned 
by  the  corporation.  (Sec.  1323  supra.) 

(b)  Corporations  other  than  Iowa  corporations. 

Taxable.     (But  see  note  after  Sec.  17.) 
(Iowa  Code,  Sees.  1308,  1310,  1313;  137  Iowa,  24.) 

Sec.  3.    Insurance  Corporation  Stocks. 

(a)  Iowa  corporations. 

Taxable  to  the  holder,  but  the  corporation 
pays  the  tax  for  the  holder.  Deductions 
are  allowed  for  real  estate  owned  by  the 
corporation.  (But  see  note  after  Sec.  17.) 
(Iowa  Code,  Sees.  1323,  1324,  1325;  Code  Suppl., 
Sec.  1333-a.) 

(b)  Corporations  other  than  Iowa  corporations. 

Taxable.    (But  see  note  after  Sec.  17.) 

(Iowa  Code  Suppl.,  Sec.  1333,  as  amended  by  Session 
Laws  of  1911,  Ch.  18,  Sec.  2.) 


EXEMPT  AND  TAXABLE  —  IOWA  59 

Sec.  4.    Manufacturing  Corporation  Stocks. 

(a)  Iowa  corporations. 

Exempt  if  the  corporation  has  property  taxed 
in  Iowa;   otherwise   taxable.      (But   see 
note  after  Sec.  17.) 
(Iowa  Code,  Sees.  1308,  1310,  1313,  1319,  1323. 

(b)  Corporations  other  than  Iowa  corporations. 

Taxable.     (But  see  note  after  Sec.  17.) 
(Iowa  Code,  Sees.  1308,  1310,  1313.) 

Sec.  5.    Other  Business  Corporation  Stocks. 

(a)  Iowa  corporations. 

Exempt  if  the  corporation  has  property  taxed 
in   Iowa;    otherwise   taxable.     (But    see 
note  after  Sec.  17.) 
(Iowa  Code,  Sees.  1308,  1310,  1313,  1318,  1323.) 

(b)  Corporations  other  than  Iowa  corporations. 

Taxable.     (But  see  note  after  Sec.  17.) 
(Iowa  Code,  Sees.  1308,  1310,  1313.) 

Sec.  6.    Unincorporated  Association  Stocks. 

Property  taxed  like  that  of  any  other  part- 
nership.    Hence,   shares  exempt  to   the 
holder. 
(Iowa  Code,  Sees.  1308,  1317.) 


BONES. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  page  11.) 


60  INVESTMENT  SECURITIES 

Sec.  8.    Iowa  State  Bonds. 

Taxable.     (But  see  note  after  Sec.  17.) 

(Iowa  Code,  Sec.  1310.) 

Sec.  9.    Iowa  Municipal  Bonds. 

Exempt  if  issued  after  July  4,  1909. 
(This  includes  also  school  and  drainage  bonds.) 
(Code  Suppl.,  Sec.  1304,  as  amended  by  Session  Laws 
of  1909,  Ch.  81,  Sec.  1.) 

Otherwise  taxable. 
(Iowa  Code,  Sec.  1310.) 

Sec.  10.    State  and  Municipal  Bonds  of  Other  States 
and  Countries. 

Taxable.     (But  see  note  after  Sec.  17.) 
(Iowa  Code,  Sec.  1310.) 

Sec.  11.    Corporation  Bonds. 

Taxable.     (But  see  note  after  Sec.  17.) 
(Iowa  Code,  Sec.  1310.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 
Taxable  whether  the  real  estate  is  in  Iowa  or 
elsewhere.     (But  see  note  after  Sec.  17.) 
(Iowa  Code,  Sees.  1308,  1309,  1310;  33  Iowa,  376.) 

Sec.  13.    Commercial  Paper. 
Taxable.     (But  see  note  after  Sec.  17.) 

(Iowa  Code,  Sees.  1308,  1309,  1310.) 


Sees 


EXEMPT  AND  TAXABLE  —  IOWA  61 

BANK  DEPOSITS. 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  Iowa  Banks. 

16.  Deposits  in  Iowa  Savings  Banks. 

17.  Deposits    in    Banks    Located    Outside 

Iowa. 

Taxable.     (But  see  note  after  Sec.  17.) 
(Iowa  Code,  Sees.  1308,  1310,  1313;  43  Iowa,  600.) 

NOTE. —  Moneys,  credits,  and  shares  of  stock  in  cor- 
porations other  than  banks,  except  as  otherwise  pro- 
vided, are  taxed  at  the  rate  of  5  mills  on  the  dollar  of 
actual  valuation,  in  lieu  of  all  other  taxes.  This  in- 
cludes all  taxable  corporate  shares  other  than  those 
in  banks,  trust  companies,  and  building  and  loan  asso- 
ciations; also  all  taxable  bonds,  all  mortgages,  notes, 
and  bank  deposits.  (Iowa  Code,  Sec.  1310,  as  amended 
by  Laws  of  1911,  Ch.  63,  Sec.  1.) 


KANSAS. 
STOCKS. 

Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable  to  the  holder,  but  in  practice  the  bank 
pays  the  tax  for  the  holder.  Deductions 
are  allowed  for  real  estate  owned  by  the 
bank. 

(Gen.  Stat,,  Sec.  9298;  45  Kans.  726,  and  59  Kans. 
410,  overruling  6  Kans.  App.  74.)    - 

(b)  Kansas  banks. 

Same  as  national  banks. 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Gen.  Stat.,  Sees.  9214,  9215,  9226;  82  Kans.  824.) 

(d)  Building  and  loan  associations. 

Taxable  to  the  holder;  deduction  is  allowed 
for  real  estate  owned  by  the  association. 
(Gen.  Stat.,  Sec.  9244.) 

c  2.  Public  Service  Corporation  Stocks. 
„  I  3.  Insurance  Corporation  Stocks. 

I  4.    Manufacturing  Corporation  Stocks. 

I  5.  Other  Business  Corporation  Stocks, 
(a)  Kansas  corporations. 

Exempt. 

(Gen.  Stat.,  Sec.  9229.) 
[62] 


EXEMPT  AND  TAXABLE  —  KANSAS  63 

(b)  Corporations  other  than  Kansas  corporations. 

Exempt  if  its  principal  place  of  business  is  in 

Kansas,  otherwise  taxable. 
(Gen.  Stat.,  Sees.  9214,  9215,  9226,  9243,  9298;  82 
Kans.  824.) 

Sec.  6.    Unincorporated  Association  Stocks. 

Exempt  if  the  association  has  property  in  the 

state. 

(Gen.  Stat.,  Sec.  9229.) 
Otherwise  taxable.     Such  shares  are  in  fact 

practically  unknown  in  Kansas. 
(Gen.  Stat.,  Sees.  9214,  9215,  9226.) 


BONDS. 


Sec.  7.    United  States  Bonds. 

Exempt.     (See  page  11.) 
The  interest  on  such  bonds  is,  however,  tax- 
able. 

(Gen.  Stat.,  Sec.  9226.) 

Sec.  8.    Kansas  State  Bonds. 

Exempt. 

(Gen.  Stat.,  Sec.  9350.) 

Sec.  9.    Kansas  Municipal  Bonds. 

Exempt. 

(Gen.  Stat.,  Sec.  9350.) 


64  INVESTMENT  SECUEITIES 

Sec.  10.    State  and  Municipal  Bonds  of  Other  States 

and  Countries. 
Taxable. 

(Gen.  Stat.,  Sec.  9226.) 

Sec.  11.    Corporation  Bonds. 

Taxable. 

(Gen.  Stat.,  Sec.  9226.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 
Taxable  whether  the  real  estate  is  in  Kansas 

or  elsewhere. 
(Gen.  Stat.,  Sec.  9037;  6  Kans.  403;  76  Kans.  816.) 

Sec.  13.    Commercial  Paper. 

Taxable. 

(Gen.  Stat.,  Sees.  9037,  9220.  Deduction  is  allowed 
for  unsecured  debts  owing  by  the  holder.  Sec.  9222, 
supra.) 


BANK  DEPOSITS. 


Sees. 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  Kansas  Banks. 

16.  Deposits  in  Kansas  Savings  Banks. 

17.  Deposits    in    Banks    Located    Outside 

Kansas. 

Taxable. 

(Gen.  Stat.,  Sees.  9037,  9215,  9220.) 


KENTUCKY. 


STOCKS. 

Sec.  1.    Bank  Stocks, 
(a)  National  banks. 

Taxable  to  the  holder,  the  bank  to  pay  the 

tax. 

(Kentucky  Statutes,  Sec.  4092;  Acts  of  1906,  Ch.  22, 
Art,  4,  Subd.  2,  Sees.  1-5.) 

<b)  Kentucky  banks. 

Taxed  same  as  national  banks. 

(Hager   v.    Citizens   National   Bank,    127   Ky.    192; 
Citizens  National  Bank  v.  Com.,  118  Ky.  51.) 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Kentucky  Statutes,  Sees.  4020,  4058  and  cf.  4092.) 

(d)  Building  and  loan  associations. 

Taxable  except  when  the  amount  borrowed 

equals  or  exceeds  the  amount  paid  in. 
(Kentucky    Statutes,    Sec.    4093;    Com.    v.    Home   & 
Savings  Fund  Co.  Bldg.  Assn.,  127  Ky.  537.) 

Sec.  2.    Public  Service  Corporation  Stocks. 

(a)  Kentucky  corporations. 

Exempt  so  long  as  the  corporations  ' '  pay  the 
taxes  on  the  corporate  property  and  fran- 
chises "  as  provided  by  the  statutes,  in- 
cluding also  guaranty  or  security,  water, 

5  [65] 


66  INVESTMENT  SECURITIES 

gas,  ferry,  bridge,  street  railway,  electric 
light,  electric  power,  telegraph,  telephone, 
express,  press  dispatch,  turnpike,  palace- 
car,  dining-car,  sleeping-car  and  chair- 
car  companies  or  every  other  company 
having  or  exercising  any  special  or  ex- 
clusive privilege  or  franchise  not  allowed 
by  law  to  natural  persons,  or  performing 
any  public  service. 
(Kentucky  Statutes,  Sees.  4058,  4079,  4088,  4095.) 

(b)  Corporations  other  than  Kentucky  corporations. 

Taxable,  except  such  "  franchise  "  corpora- 
tions as  pay  a  tax  in  this  state  on  their 
property  situated  here  and  also  pay  a 
franchise  tax  in  this  state,  the  stocks  of 
which  are  exempt. 

(Kentucky  Statutes,  Sees.  4020,  4058,  4080,  and  4088; 
Com.  v.  Walsh's  Trustee,  133  Ky.  103;  Com.  v. 
Fidelity  Trust  Co.,  147  Ky.  77.) 

f3.    Insurance  Corporation  Stocks. 
Sees,  j  4.    Manufacturing  Corporation  Stocks. 
[  5.    Other  Business  Corporation  Stocks. 

(a)  Kentucky  corporations. 

Exempt.     (See  next  note.) 

(b)  Corporations  other  than  Kentucky  corporations. 

Taxable,  except  such  corporations  as  hold  any 
property  in  Kentucky.  (See  next  note.) 

NOTE. —  The  same  rules  apply  to  all  three  classes  of 
stocks,  viz. :  Sees.  3,  4,  and  5.  If  incorporated  under 
the  laws  of  Kentucky  the  stock  is  exempt  so  long  as 
the  corporation  "  pays  the  taxes  on  all  its  property  of 
every  kind."  (Kentucky  Statutes,  Sees.  4058  and 


EXEMPT  AND  TAXABLE  —  KENTUCKY  67 

4085.)  If  incorporated  under  the  laws  of  any  other 
state  or  country  the  stock  is  taxable  unless  such  corpo- 
ration holds  some  property  in  Kentucky  and  pays  taxes 
in  Kentucky  on  that  property,  in  which  case  its  stock  is 
exempt  from  taxation  in  the  hands  of  the  holder. 
(Kentucky  Statutes,  Sec.  4085.  See  also  Com.  v.  Fidel- 
ity Trust  Co.,  143  S.  W.  1037.)  For  special  provisions 
regarding  life  insurance  companies  see  Acts  1912,  Ch. 
65. 

Sec.  6.    Unincorporated  Association  Stocks. 
Treated  as  corporations. 

(Kentucky  Statutes,  Sees.  4058,  4082,  and  also  other 
citations  above.) 


BONDS. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 

Sec.  8.    Kentucky  State  Bonds. 
Taxable. 

NOTE. —  There  are  no  Kentucky  state  bonds  out- 
standing in  the  hands  of  the  public.  There  are  state 
"  warrants "  wlrch  are  said  by  the  attorney-general 
to  be  exempt  in  the  hands  of  creditors  of  the  state. 
In  practice  none  are  taxed. 
(Kentucky  Statutes,  Sees.  4020,  4022,  4058.) 

9.    Kentucky  Municipal  Bonds. 
,  10.    State  and  Municipal  Bonds  of  Other 

States  and  Countries. 
11.    Corporation  Bonds. 

Taxable. 

(Kentucky  Statutes,  Sees.  4020,  4022,  4058.) 


68  INVESTMENT  SECUBITIES 

NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 
Taxable  whether  the  real  estate  is  in  Ken- 
tucky or  elsewhere. 

(Kentucky  Statutes,  Sees.  4020,  4022,  4058.) 

Sec.  13.    Commercial  Paper. 

Taxable. 

(Kentucky  Statutes,  Sees.  4020,  4022,  4058.  See  also 
Com.  v.  Solliger,  126  Ky.  66,  98  S.  W.  1040,  102 
S.  W.  810.) 


Sees. 


BANK  DEPOSITS. 

- 14.  Deposits  in  National  Banks. 

15.  Deposits  in  Kentucky  Banks. 

16.  Deposits  in  Kentucky  Savings  Banks. 

17.  Deposits    in    Banks    Located    Outside 

Kentucky. 

Taxable. 

(See  sections  cited  above.     See  Com.  v.  Watlaen,  126 
Ky.  573.) 


LOUISIANA. 

STOCKS. 

Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable  to  the  holder,  the  bank  to  pay  the 

tax. 
(Const.  &  Rev.  Laws,  Vol.  2,  p.  1561.) 

(b)  Louisiana  banks. 

Taxed  in  the  same  manner  as  shares  of  stock 
in  national  banks.     (See  also  note  below.) 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Const.  &  Rev.  Laws,  Vol.  2,  p.  1541.) 

(d)  Building  and  loan  associations. 

Taxable. 

(Const.  &  Rev.  Laws,  Vol.  2,  p.  1541.) 

Sec.  2.    Public  Service  Corporation  Stocks. 

(a)  Louisiana  corporations. 

Exempt.  (See  note  below.) 
An  amendment  to  the  Constitution  was 
adopted  November  8,  1910,  providing 
that  steamship  companies  organized  as 
hereinafter  set  forth,  together  with  all 
their  capital  stock,  property,  etc.,  shall 
be  exempt  from  all  taxes  and  licenses, 
state,  parish,  levee  and  municipal  for 

[69] 


70  INVESTMENT  [SECURITIES 

15  years  from  date  of  filing  with  the 
Secretary  of  State,  proof  that  their  au- 
thorized capital  stock  has  been  paid  in 
full  in  cash.  Such  companies  must  have 
been  organized  and  the  whole  of  their 
authorized  capital  stock  paid  in  cash, 
within  two  years  from  Jan.  1,  1911, 
the  company  to  be  domiciled  in  New 
Orleans  or  in  some  other  port  of  the 
state;  to  have  a  capital  stock  of  at  least 
$3,000,000,  payable  only  in  cash;  no  one 
person  or  corporation  should  own  di- 
rectly or  indirectly  more  than  1/20  of  the 
capital  stock;  the  capital  stock  to  be  open 
to  public  subscription  by  public  adver- 
tisement in  New  Orleans  newspapers  for 
at  least  three  months  before  the  books 
are  closed. 
(Acts  of  1910,  Act  279.) 

(b)  Corporations  other  than  Louisiana  corporations. 
Taxable.     (See  note  below.) 

3.    Insurance  Corporation  Stocks. 
Sees.-  4.    Manufacturing  Corporation  Stocks. 
5.    Other  Business  Corporation  Stocks. 

(a)  Louisiana  corporations. 

Exempt.     (See  next  note.) 

(b)  Corporations  other  than  Louisiana  corporations. 

Taxable.     (See  next  note.) 

NOTE. —  The  same  rules  apply  to  all  four  classes  of 
stocks,  viz.:  Sees.  2,  3,  4,  and  5.)    If  incorporated  un- 


EXEMPT  AND  TAXABLE  —  LOUISIANA  71 

der  the  laws  of  Louisiana  the  stock  is  exempt.  (Chas- 
saniol  v.  Bd.  of  Assessors,  120  La.  777 ;  Allgeyer  v.  Bd. 
of  Assessors,  121  La.  149.  See  also  Const.  &  Rev. 
Laws,  Vol.  3,  p.  754.)  If  incorporated  under  the  laws 
of  any  other  state  or  country  the  stock  is  taxable. 
( Const.  &  Rev.  Laws,  Vol.  2,  p.  1541 ;  cf .  Chassaniol  v. 
Bd.  of  Assessors,  120  La.  777.) 

Sec.  6.    Unincorporated  Association  Stocks. 
Exempt. 

NOTE. —  It  would  seem  that  shares  in  these  associa- 
tions that  were  domestic  should  be  exempt  under  the 
principle  laid  down  in  Chassaniol  v.  Bd.  of  Assessors. 

See  also  Const.  &  Rev.  Laws,  Vol.  2,  pp.  1541  and 
1591. 


BONDS. 

Sec.  7.    United  States  Bonds. 

Exempt.     (See  page  11.) 

Sec.  8.    Louisiana  State  Bonds. 
Exempt. 

(State  ex  rel.  Da  Ponta  v.  Bd.  of  Assessors,  35  La. 
Ann  657.) 

Sec.  9.    Louisiana  Municipal  Bonds. 
Exempt. 

(State  ex  rel.  La.  Imp.  Co.  v.  Bd.  of  Assessors,  111 
La.  982.) 


72 

Sec.   10.     State   and   Municipal   Bonds   of   Other 
States  and  Countries. 

Taxable. 

(Const.  &  Rev.  Laws,  Vol.  2,  p.  1541.) 

Sec.  11.    Corporation  Bonds. 

Taxable. 

(Const.  &  Rev.  Laws,  Vol.  2,  p.  1541.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 

Notes  secured  by  mortgages  of  real  estate  in 
Louisiana  and  loans  made  by  life  insur- 
ance companies  to  their  policyholders  are 
exempt  by  constitutional  amendment 
adopted  in  November,  1908.  See  Act  62 
of  1908,  p.  76.  Other  mortgages  are 
taxable. 
(Const.  &  Rev.  Laws,  Vol.  2,  p.  1541.) 

Sec.  13.    Commercial  Paper. 

Taxable. 

(Const.  &  Rev.  Laws,  Vol.  2,  p.  1541.) 


Sees. 


EXEMPT  AND  TAXABLE  —  LOUISIANA  73 

BANK  DEPOSITS. 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  Louisiana  Banks. 

16.  Deposits  in  Louisiana  Savings  Banks. 

17.  Deposits    in    Banks    Located    Outside 

Louisiana. 

Taxable  (but  in  practice  very  few  are  ever 

taxed). 
(Const.  &  Rev.  Laws,  Vol.  2,  pp.  1541  and   1590.) 

There  is  apparently  no  deduction  allowed  for 
debts  owing.  It  is  expressly  provided 
that  they  cannot  be  deducted  from  the 
amount  of  cash  on  hand. 

NOTE. —  Proposed  constitutional  amendments  sepa- 
rating sources  of  state  and  local  revenue  will  be  sub- 
mitted to  the  voters  in  November,  1912. 


MAINE. 

STOCKS. 
Sec.  1.    Bank  Stocks. 

(See  not  at  end  of  Sec.  6.) 

(a)  National  banks. 

Taxable. 

(R.  S.  1903,  Ch.  9,  Sees.  29  and  30.) 

(b)  Maine  banks. 

Taxable. 

(R.  S.  1903,  Ch.  9,  Sees.  29  and  30.) 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(R.  S.  1903,  Ch.  9,  Sec.  5.) 

(d)  Building  and  loan  associations. 

Exempt. 

(R.  S.  1903,  Ch.  8,  Sec.  59.) 

Sec.  2.    Public  Service  Corporation  Stocks. 

(a)  Maine  corporations. 

Taxable  except  those  of  railroad,  street  rail- 
way, telephone,  telegraph  and  express 
companies  doing  business  in  the  state, 
which  are  exempt. 

(Acts  1911,  Ch.  105;  R.  S.  1903,  Ch.  8,  Sees.  24,  31; 
Sees.  36  and  41  as  amended  by  Acts  1909,  Ch.  210, 
Sec.  3;  Sees.  42  and  44,  as  amended  by  Acts  1909, 
Ch.  152,  Sees.  1  and  2.) 

(b)  Corporations  other  than  Maine  corporations. 

Same  as  Sec.  2  (a). 

[74] 


EXEMPT  AND  TAXABLE  —  MAINE  75 

Sec.  3.    Insurance  Corporation  Stocks. 

(a)  Maine  corporations. 

Taxable  except  life  insurance  stocks,  which 

are  exempt. 
(R.  S.  1903,  Ch.  8,  Sec.  46;  Ch.  9,  Sec.  30.) 

(b)  Corporations  other  than  Maine  corporations. 

Taxable. 

(R.  S.  1903,  Ch.  9,  Sec.  5.) 

Sec.  4.    Manufacturing  Corporation  Stocks. 

f  (a)  Maine  corporations. 

[  (b)  Corporations  other  than  Maine  corporations. 

In   practice   exempt   when   corporations   do 
business  in  Maine. 

(R.  S.  1903,  Ch.  9,  Sec.  13,  Cl.  III.) 
Otherwise  taxable. 

(R.  S.  1903,  Ch.  9,  Sec.  5.) 

Sec.  5.    Other  Business  Corporation  Stocks. 

{(a)  Maine  corporations, 
(b)  Corporations  other  than  Maine  corporations. 

Taxable  (but  see  Note  after  Sec.  6). 
(R.  S.  1903,  Ch.  9,  Sec.  5.) 

Shares  in  mining,  smelting  and  realty  corpo- 
rations  and   in   agricultural   and   stock 
raising  corporations  are  exempt  when  the 
corporation  does  business  in  Maine. 
(R.  S.  1903,  Ch.  9,  Sec.  26;  Acts  1907,  Ch.  16.) 


76  INVESTMENT  SECURITIES 

Sec.  6.  Unincorporated  Association  Stocks. 
The  exemption  of  certain  public  service  cor- 
poration stocks  (see  Sec.  2a  above)  ap- 
plies to  stocks  in  associations  operating 
like  public  utilities.  Also  to  those  en- 
gaged in  life  insurance  organized  under 
the  laws  of  Maine.  (B.  S.  1903,  Ch.  8, 
Sec.  46.)  There  is  no  specific  statute  or 
decision  applicable  to  other  unincorpo- 
rated associations. 

NOTE.— R.  S.  1903,  Ch.  9,  See.  13,  Cl.  Ill,  pro- 
vides that  in  assessing  stockholders  of  any  corpora- 
tion, there  shall  be  deducted  from  the  value  of  their 
shares  the  proportional  part  of  any  machinery,  goods, 
or  real  estate,  already  taxed  in  Maine  to  the  corpora- 
tion where  such  machinery,  goods,  or  real  estate  are 
situated  or  employed.  In  practice  this  usually  ex- 
empts the  stocks. 


BONDS. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 

Sec.  8.    Maine  State  Bonds. 

Taxable,  except  those  issued  after  February 

1,  1909,  which  are  exempt. 
(R.  S.  1903,  Ch.  9,  Sec.  5;  Acts  1909,  Ch.  49,  Sec.  1.) 

Sec.  9.    Maine  Municipal  Bonds. 

Taxable,  except  those  issued  after  February 

1,  1909,  which  are  exempt. 
(R.  S.  1903,  Ch.  9,  Sec.  5;  Acts  1909,  Ch.  49,  Sec.  1.) 


EXEMPT  AND  TAXABLE  —  MAINE  77 

Sec.   10.     State   and   Municipal   Bonds   of   Other 

States  and  Countries. 

Taxable. 

(R.  S.  1903,  Ch.  9,  Sec.  5.) 

Sec.  11.    Corporation  Bonds. 

Taxable. 

(R.  S.  1903,  Ch.  9,  Sec.  5.) 

NOTE. —  The  exemption  of  mortgage  notes  has  ap- 
parently not  yet  been  held  by  the  courts  to  apply 
to  corporate  bonds  secured  by  mortgage  of  Maine 
real  estate,  though  it  seems  likely  that  the  Massa^ 
chusetts  rule  would  be  followed. 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 
Exempt  if  secured  by  Maine  real  estate ;  other- 
wise taxable.    (See  note  after  Sec.  13.) 
(R.   S.  1903,  Ch.  9,  Sees.  2  and  5,  and  Sec.  6,  as 
amended  by  Acts  of  1911,  Ch.  179.) 

Sec.  13.    Commercial  Paper. 

Taxable. 

(R.  S.  1903,  Ch.  9,  Sec.  5.) 

NOTE. —  Deduction  of  debts  is  allowed  from  money 
at  interest  and  from  debts  due  the  taxpayer. 
(R.  S.  1903,  Ch.  9,  Sec,  5;  Taylor  v.  Caribou,  102  Me. 

401;  Powell  v.  Old  Town,  108  Me.  532.) 


78  INVESTMENT  SECURITIES 

BANK  DEPOSITS. 


{14.    Deposits  in  National  Banks. 
15.    Deposits  in  Maine  Banks. 
16.    Deposits  in  Maine  Savings  Banks. 

Time  deposits  and  deposits  bearing  interest 
at  the  rate  of  three  or  more  per  cent,  per 
annum  in  Maine  banks  and  trust  com- 
panies, and  all  deposits  in  savings  banks, 
are  subject  to  a  state  tax  determined  as 
provided  in  E.  S.  1903,  Ch.  8,  Sees.  53, 
54,  64  and  65,  as  amended  by  Ch.  49, 
Acts  of  1909.  This  tax  is  paid  by  the 
bank  and  such  deposits  are  exempt  from 
all  other  state,  county  and  municipal 
taxation,  either  to  the  bank  or  to  the 
depositor. 
(R.  S.  1903,  Ch.  8,  Sees.  55  and  67.) 

Deposits  subject  to  check  in  the  above-named 
institutions   are  liable  to   state,   county 
and  municipal  taxation,   the  tax  being 
paid  by  the  depositor. 
(R.  S.  1903,  Ch.  9,  Sec.  5.) 

NOTE. —  In  practice,  deposits  in  national  banks  seem 
to  be  classified  and  taxed  like  those  in  Maine  banks,  al- 
though the  statute  does  not  include  them  in  its  terms. 

Sec.  17.    Deposits  in  Banks  Located  Outside  Maine. 
Taxable. 

(R.  S.  1903,  Ch.  9,  Sees.  2  and  5.) 


MARYLAND. 


STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxed  to  the  holder  where  holder  resides,  but 
the  bank  is  to  pay  the  tax  as  agent  of  the 
holder. 

(Annotated  Code,  Art.  81,  Sees.  2,  24,  89,  151,  153, 
159,  162;  Baltimore  v.  Alleghany  County,  99  Md. 
5.) 

(b)  Maryland  banks. 

Same  as  national  banks. 

(See  citations  under  Sec.  1  (a)  — and  also  Sec.  217.) 

Except  savings  banks  and  other  institutions 
for  receiving  deposits  of  money  and  pay- 
ing interest  thereon,  shares  of  which  are 
exempt. 
(Art.  81,  Sees.  2,  91.) 

(c)  Banks  of  other  states  and  countries. 

Taxable.     (But  see  note  2  after  Sec.  17.) 
(Art.  81,  Sees.  2,  8,  214.) 

(d)  Building  and  loan  associations. 

Exempt,  to  the  extent  of  their  investment  in 
mortgages  on  real  estate  located  in  Mary- 
land. 

(Art.  81,  Sees.  2,  211.  See  also  Sec.  91;  Art.  23, 
Sees.  138,  142.) 

[79] 


80 


Sec.  2.    Public  Service  Corporation  Stocks. 

(a)  Maryland  corporations. 

Taxed  to  the  holder,  but  the  company  is  to 
pay  the  tax  as  agent  of  the  stockholder 
and  may  charge  the  same  to  the  share- 
holder. (See  note  1  after  Sec.  17.) 
(Art.  81,  Sees.  2,  89,  150,  151,  153,  159,  162;  Balti- 
more v.  Alleghany  County,  99  Md.  5;  Union  Trust 
Co.  v.  State,  81  Atl.  873.) 

Exception.     The  stocks  of  all  steam  railroad 

companies  doing  business  in  this  state  are 

exempt. 
(See  Art.  81,  Sees.  4,  162.     As  to  taxation  of  gross 

receipts  of  railroads,  see  Sec.  167  et  seq.) 
(As  to  taxation  of  personal  and  real  property  for 

county  and  municipal  purposes,  see  Sec.  2.) 

(b)  Corporations  other  than  Maryland  corporations. 

Taxable.     (But  see  note  2  after  Sec.  17.) 
(Art.  81,  Sees.  2,  214.     See  Art.  23,  Sec.  97;  Wilkens 
v.   Baltimore,   103   Md.   309;    Consol.    Gas   Co.   v. 
Baltimore,  101  Md.  541.) 

Exception.  As  to  stock  of  steam  railroads 
doing  business  in  Maryland.  (See  ex- 
ception under  Sec.  2  (a).) 

f  3.    Insurance  Corporation  Stocks. 
Secs.-j  4.    Manufacturing  Corporation  Stocks. 
[  5.    Other  Business  Corporation  Stocks, 
(a)  Maryland  corporations. 

Taxed  to  the  holder,  but  the  company  is  to 
pay  the  tax  as  agent  of  the  holder  and 
may  charge  the  same  to  the  shareholder. 
(See  note  1  after  Sec.  17.) 

(See  citations  under  Sec.  2  (a).) 


EXEMPT  AND  TAXABLE  —  MARYLAND  81 

(b)  Corporations  other  than  Maryland  corporations. 
Taxable.     (But  see  note  2  after  Sec.  17.) 

(See  citations  under  Sec.  2   (b).) 

Sec.  6.    Unincorporated  Association  Stocks. 

They  are  treated  the  same  as  shares  in  cor- 
porations. 
(See  citations  above.) 


BONDS. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 

Sec.  8.    Maryland  State  Bonds. 

Exempt. 

(Art.  81,  Sec.  214.) 

Sec.  9.    Maryland  Municipal  Bonds. 

Taxable.     (But  see  note  2  after  Sec.  17.) 
(Art.  81,  Sees.  2,  3,  114,  214.) 

NOTE. —  Baltimore  City  stock  is  exempt  from  local 
taxes. 
(Annotated  Code,  Art.  81,  Sees.  107-111;  Baltimore 

v.  State,  105  Md.  3;  Schley  v.  Lee,  106  Md.  401.) 

Sec.   10.     State   and   Municipal  Bonds   of   Other 
States  and  Countries. 

Taxable.     (But  see  note  2  after  Sec.  17.) 
(Art.  81,  Sees.  2,  3,  114,  214.) 

6 


82 


Sec.  11.    Corporation  Bonds. 

Taxable.     (But  see  note  2  after  Sec.  17.) 
(Art.  81,  Sees.  2,  3,  94,  207,  214.     See  also  Consol. 
Gas  Co.  v.  Baltimore,  101  •  Md.  555;   Consol.  Gas 
Co.  v.  Baltimore,  105  Md.  50;  Musgrove  v.  B.  &  0. 
R.  B.,  Ill  Md.  629.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 

Taxable,  whether  the  real  estate  is  in  Mary- 
land or  elsewhere.  (But  see  note  after 
Sec.  13  and  note  2  after  Sec.  17.) 
(Art.  81,  Sees.  2,  215.  See  also  Consol.  Gas.  Co.  v. 
Baltimore,  101  Md.  555;  Consol.  Gas  Co.  v.  Balti- 
more, 105  Md.  50. 

NOTE. —  As  to  mortgages  in  certain  counties,  see 
Sec.  187  as  amended  by  Acts  of  1912,  Ch.  115;  Miller 
v.  Wicomico  County,  107  Md.  440.) 

Sec.  13.    Commercial  Paper. 
Taxable,  except  such  as  was  given  for  book 
accounts  of  any  person  engaged  in  com- 
mercial business  who  is  taxed  on  average 
value  of  stock  in  trade. 
(Art.  81,  Sees.  2,  4.) 

NOTE, —  Obligations  given  by  individuals  and  firms 
are  assessed  at  a  graduated  rate  proportioned  approx- 
imately to  the  rate  of  interest  charged.  (Art.  81,  Sec. 
207.) 


Sees. 


EXEMPT  AND  TAXABLE  —  MARYLAND  83 

BANK  DEPOSITS. 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  Maryland  Banks. 

16.  Deposits  in  Maryland  Savings  Banks. 

17.  Deposits    in    Banks    Located    Outside 

Maryland. 

Exempt  in  practice.  By  Sec.  91  of  Art.  81  of 
the  Annotated  Code  it  is  provided  that 
Savings  Banks  and  other  institutions  of 
deposit  within  the  state  shall  pay  a  tax 
on  their  deposits.  Whether  or  not  this  is 
interpreted  as  an  exemption  of  all  de- 
posits to  the  depositors  is  doubtful,  but 
in  practice  all  deposits  are  exempt 
whether  in  or  out  of  the  state. 

NOTE  1.  Nonresidents  who  are  holders  of  stock  in 
Maryland   corporations   are   taxed  on  their  holdings 
at  the  principal  place  of  business  of  such  corpora- 
tion in  Maryland. 
(Art.  81,  Sec.  150;  Baltimore  v.  B.,  etc.,  R.  R.,  57 

Md.  35;  Corry  v.  Baltimore,  96  Md.  319,  affirmed 

196  U.  S.  466.) 

NOTE.  2.  All  taxable  bonds  and  mortgages  and 
shares  of  stock  in  corporations  incorporated  or  located 
outside  the  state  are  taxable  at  the  regular  rate  for 
state  purposes  (usually  about  iMs  mills),  and  at  a  uni- 
form rate  of  30  cents  per  $100  of  valuation  for  county 
and  municipal  purposes.  Bonds  upon  which  no  inter- 
est is  paid,  and  foreign  stocks  upon  which  no  dividends 
are  paid,  are  exempt. 
(Ann.  Code,  Art.  81,  Sec.  214.) 


MASSACHUSETTS. 


STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable  to  the  holder,  but  the  bank  pays  the 

tax  for  the  stockholder. 
(Acts  1909,  Ch.  490,  Part  HI,  Sees.  11,  12.) 

(b)  Massachusetts  banks. 

There  are  no  state  banks  of  deposit.     The 

stock  of  trust  companies  is  exempt. 
(Acts  1909,  Ch.  490,  Part  III,  Sees.  37,  64.) 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Acts  1909,  Ch.  490,  Part  I,  Sec.  4,  Par.  3.) 

(d)  Building    and    loan    associations    (called    co-operative 

banks  in  Massachusetts). 

Exempt  if  organized  under  the  laws  of  Massa- 
chusetts. 
(Acts  1909,  Ch.  490,  Part  III,  Sec.  25.) 

Sec.  2.    Public  Service  Corporation  Stocks. 

(a)  Massachusetts  corporations. 

Exempt. 

(Acts  1909,  Ch.  490,  Part  III,  Sees.  40,  43,  52  and  64.) 

(b)  Corporations  other  than  Massachusetts  corporations. 

Taxable,  except  railroad,  street  railway,  elec- 
tric   railroad,    telegraph    and    telephone 

[84] 


EXEMPT  AND  TAXABLE  —  MASSACHUSETTS       85 

companies   incorporated    elsewhere,    but 
doing"  business  in  the  state,  the  stocks  of 
which  are  exempt. 
(Acts  1909,  Ch.  490,  Part  III,  Sees.  40,  43,  52  and  64.) 

f  3.    Insurance  Corporation  Stocks. 

H  4.    Manufacturing  Corporation  Stocks. 

[  5.    Other  Business  Corporation  Stocks. 

(a)  Massachusetts  corporations. 

Exempt.     (See  note  next  below.) 

(b)  Corporations  other  than  Massachusetts  corporations. 

Taxable.     (See  note  next  below.) 

NOTE. —  The  same  rules  apply  to  all  three  classes  of 
stocks,  viz.:  Sees.  3,  4,  and  5.)  If  incorporated  under 
the  laws  of  Massachusetts  the  stock  is  exempt.  (Acts 
1909,  Ch.  490,  Part  III,  Sees.  40,  43,  64.)  If  incorpo- 
rated under  the  laws  of  any  other  state  or  country  the 
stock  is  taxable.  (Acts  1909,  Ch.  490,  Part  I,  Sec.  4, 
Par.  3.) 

Sec.  6.    Unincorporated  Association  Stocks. 

Exempt. 

NOTE. —  These  associations  are  technically  either 
partnerships  or  trusts  in  Massachusetts  and  there  is 
no  statute  taxing  the  evidence  of  the  partner's  in- 
terest, or  the  interest  of  the  beneficiary  in  addition 
to  the  tax  on  the  title  of  the  trustee;  and  in  practice 
they  are  not  taxed.  The  shares  of  foreign  associations 
doing  a  telegraph  business  in  the  state  are  expressly 
exempt. 
(Acts  1909,  Ch.  490,  Part  III,  Sees.  52  and  64.) 


86  INVESTMENT  SECUKITIES 

BONDS. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 
Sec.  8.    Massachusetts  State  Bonds. 
Taxable,  except  bonds  or  certificates  of  in- 
debtedness issued  since  Jan.  1,  1906. 
(Acts  1909,  Ch.  490,  Part  I,  Sec.  4,  Par.  2,  and  Sec. 
5,  Par.  15.) 

Sec.  9.  Massachusetts  Municipal  Bonds. 
Taxable,  except  bonds,  notes,  or  certificates 
of  indebtedness  of  any  county,  fire  dis- 
trict, water  supply  district,  city,  or  town, 
issued  after  May  1,  1908,  and  stating  on 
their  face  that  they  are  exempt  from  tax- 
ation in  Massachusetts. 

(Acts  1909,  Ch.  490,  Part  I,  Sec.  4,  Par.  2,  and  Sec. 
5,  Par.  15.) 

Sec.   10.     State   and   Municipal   Bonds   of   Other 

States  and  Countries. 
Taxable. 

(Acts  1909,  Ch.  490,  Part  I,  Sec.  4,  Par.  2.) 

Sec.  11.    Corporation  Bonds. 

Taxable,  whether  the  corporation  is  organ- 
ized under  the  laws  of  Massachusetts  or 
some  other  state  or  country. 
(Acts  1909,  Ch.  490,  Part  I,  Sec.  4,  Par.  2.) 

NOTE. —  The  exemption  of  real  estate  mortgages  to 
the  extent  of  the  assessed  value  (see  below)  has  been 


EXEMPT  AND  TAXABLE  —  MASSACHUSETTS       87 

applied  to  mortgages  of  corporations  securing  bonds 
where  such  mortgage  covers  only  Massachusetts  real 
estate.  If  the  assessed  value  of  the  real  estate  is  less 
than  the  value  of  the  bonds,  the  bonds  are  taxable  for 
this  excess  even  if  the  security  of  the  mortgage  is 
only  Massachusetts  real  estate.  (Brooks  v.  West 
Springfield,  193  Mass.  190.)  •  Certain  railroad  bonds 
have  been  declared  by  special  act  to  be  loans  on  mort- 
gage of  real  estate  for  the  purpose  of  taxation.  The 
validity  of  this  has  never  been  tested.  (Acts  1909, 
Ch.  490,  Part  I,  Sec.  19.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 
Notes  secured  only  by  mortgages  of  real  es- 
tate in  Massachusetts  are  exempt  to  the 
extent  of  the  assessed  value  of  the  real 
estate.    The  excess,  if  any,  is  taxable.    In 
practice  such  mortgages  are  never  taxed. 
Mortgages  secured  by  real  estate  outside 
Massachusetts  are  taxable. 
(Acts  1909,  Ch.  490,  Part  I,  Sec.  4,  Par.  2;  Brooks 
v.  West  Springfield,  193  Mass.  190.) 

Sec.  13.    Commercial  Paper. 

Taxable. 

(Acts  1909,  Ch.  490,  Part  I,  Sec.  4,  Par.  2.) 
Deduction     of    interest     bearing     debts     is 
allowed  from  "  money  at  interest." 

(Acts  1909,  Ch.  490,  Part  I,  Sec.  4,  Par.  2.) 


INVESTMENT  SECUEITIES 
BANK  DEPOSITS. 


Sec.  14.    Deposits  in  National  Banks. 

Taxable. 

(Acts  1909,  Ch.  490,  Part  I,  Sec.  4.) 

Sec.  15.    Deposits  in  Massachusetts  Banks. 

Taxable. 

(Acts  1909,  Ch.  490,  Part  I,  Sees.  4,  26.) 
Deposits  in  the  savings  departments  of  trust 
companies  are  exempt  like  other  savings 
bank    deposits,    but    the    exemption    is 
limited  to  deposits  that  do  not  exceed  in 
amount  the  limits  imposed  upon  deposits 
in  savings  banks. 
(Acts  1909,  Ch.  342;  Acts  1911,  Ch.  337.) 

Sec.  16.    Deposits  in  Massachusetts  Savings  Banks. 

Exempt. 

(Acts  1909,  Ch.  490,  Part  III,  Sees.  21  and  23.) 

Sec.  17.    Deposits  in  Banks  Located  Outside  Massa- 
chusetts. 
Taxable. 

(Acts  1909,  Ch.  490,  Part  I,  Sec.  4.) 


MICHIGAN. 


STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxed  to  the  owner  where  bank  is  located,  but 
the  bank  is  to  pay  the  tax  on  behalf  of 
the  shareholder. 
(Compiled  Laws  1897,  Sees.  3831,  3837,  3842,  3869.) 

(b)  Michigan  banks. 

Taxed  in  the  same  manner  as  shares  in  na- 
tional banks. 
(See  citations  under  Sec.  1  (a).) 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Compiled  Laws  1897,  Sees.  3824,  3831,  3842.) 

(d)  Building  and  loan  associations. 

The  shares  in  co-operative  savings  associa- 
tions are  taxable  to  the  holder  where  the 
holder  resides. 
(Compiled  Laws  1897,  Sec.  7547.) 

But  the  shares  in  building  and  loan  associa- 
tions are  exempt  in  the  hands  of  the 
holder.  This  probably  does  not  apply  to 
shares  in  associations  incorporated  out- 
side Michigan. 

(Compiled  Laws  1897,  Sec.  7590;  National  Loan,  etc., 
Co.  v.  Detroit,  136  Mich.  451.) 
[89] 


90  INVESTMENT  SECURITIES 

Sec.  2.    Public  Service  Corporation  Stocks. 

(a)  Michigan  corporations. 

Exempt.     (See  note  after  Sec.  5.) 

(Compiled  Laws,  1897,  Sees.  3831,  3992;  Laws  1903, 
No.  235;  Laws  1909,  No.  49.) 

Exception.  The  shares  of  stock  in  all  railroad 
or  railway  companies  doing  business  in 
Michigan  under  any  special  charter  shall 
be  assessed  against  the  owner,  but  the 
corporation  is  to  deduct  the  amount  of 
the  tax  from  dividend  and  interest  and 
pay  it. 
(Laws  1911,  No.  95.) 

(b)  Corporations  other  than  Michigan  corporations. 

Taxable.     (See  note  after  Sec.  5.) 
(Compiled  Laws  1897,  Sees.  3824,  3831.) 

f  3.    Insurance  Corporation  Stocks. 
Sees.]  4.    Manufacturing  Corporation  Stocks. 
(_  5.    Other  Business  Corporation  Stocks. 

(a)  Michigan  corporations. 

Exempt.    (See  note  after  Sec.  5.) 

(Compiled  Laws  1897,  Sec.  3831;  Laws  1903,  Nos.  232, 
235.) 

(b)  Corporations  other  than  Michigan  corporations. 

Taxable.    (See  note  after  Sec.  5.) 
(Compiled  Laws  1897,  Sees.  3824,  3831.) 

NOTE. —  Shares  in  a  foreign  corporation  all  of 
whose  property  is  outside  Michigan  have  been  held 
taxable.  Bacon  v.  Board  of  Tax  Commissioners,  126 
Mich.  22.  The  shares  of  stock  in  corporations 
whether  incorporated  in  Michigan  or  elsewhere,  held 


EXEMPT  AND  TAXABLE  —  MICHIGAN  91 

by  residents  of  this  state,  the  entire  property  of 
which  is  situated  in  and  taxed  by  the  state,  are  exempt 
from  taxation  in  the  hands  of  such  holders,  for  it 
would  result  in  double  taxation,  which  is  prohibited 
by  the  constitutional  requirement  of  uniform  taxa- 
tion. Stroh  v.  City  of  Detroit,  131  Mich.  109.  The 
shares  of  stock  in  domestic  corporations  all  of  whose 
property  is  without  the  state  of  Michigan  probably 
would  be  taxable  to  the  holder  thereof,  inasmuch  as 
the  property  of  the  corporation  would  not  be  taxed 
in  Michigan.  See  Sec.  3831.  But  the  shares  of  stock 
in  foreign  corporations  part  of  whose  property  is 
situated  in  and  taxed  in  Michigan  are  nevertheless 
taxed  to  the  holder,  and  he  cannot  complain  of  an 
assessment  of  the  value  of  his  shares  diminished  by 
the  proportion  which  the  value  of  the  corporation's 
property  within  the  state  of  Michigan  bears  to  its 
whole  property.  Thrall  v.  Guiney,  141  Mich.  392. 
The  shares  of  stock  in  cemetery  corporations  are 
assessed  and  taxed  to  the  holders.  Laws  of  1899,  No. 
216. 

Sec.  6.    Unincorporated  Association  Stocks. 

Shares  in  ' '  limited  partnership  associations  ' : 
formed  under  the  laws  of  Michigan  would 
probably  be  treated  for  taxation  like 
shares  in  corporations.  Others  are  prob- 
ably taxable  but  there  are  no  express 
statutes  or  decisions. 


BONDS. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 


92  INVESTMENT  SECURITIES 

Sec.  8.    Michigan  State  Bonds. 

Taxable  (under  the  general  head  of  credits). 
(Compiled  Laws  1897,  Sees.  3824,  3831,  3842.) 

Sec.  9.    Michigan  Municipal  Bonds. 
Exempt. 

(Laws  of  1909,  No.  88.  Quaere:  Whether  Michigan 
municipal  bonds  issued  prior  to  the  date  Laws  of 
1909,  No.  88,  went  into  effect  are  taxable;  if  so,  is 
the  law  constitutional?) 

NOTE. —  Bonds,  mortgages,  and  other  certificates  of 
indebtedness  made  and  issued  by  any  municipality, 
organization,  or  private  individual  for  purpose  of 
erecting  armories  are  exempt  to  holder  within  the 
state.  (Laws  1909,  No.  84,  Sec.  64.) 

Sec.  10.    State  and  Municipal  Bonds  of  Other  States 

and  Countries. 
Taxable. 

(See  citations  under  Sec.  8.) 

Sec.  11.    Corporation  Bonds. 

Taxable. 

(See  citations  under  Sec.  8.) 

NOTE. —  All  bonds  of  railroad  or  railway  com- 
panies doing  business  in  Michigan  under  any  special 
charter  are  taxable  to  the  holders,  but  the  corporation 
is  to  pay  the  tax  in  behalf  of  such  holders.  (Laws 
1911,  No.  95.)  As  to  bonds  secured  by  mortgages  on 
real  estate  in  Michigan,  see  Sec.  12. 


EXEMPT  AND  TAXABLE  —  MICHIGAN  93 

NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 

All  indebtedness  secured  by  liens  upon  real 
estate  given  since  1912,  except  building 
and  loan  mortgages,  shall  be  subject  to 
a  specific  tax  of  50  cents  on  each  $100,  to 
be  paid  when  the  mortgage  is  presented 
for  record,  and  thereafter  that  credit  shall 
be  exempt  from  further  general  taxes  un- 
der the  laws  of  Michigan.  All  such  cred- 
its given  prior  to  January  1,  1912,  may 
be  brought  within  the  provisions  of  this 
act  if  they  are  presented  and  declared 
and  the  tax  paid  thereon. 
(Laws  1911,  No.  91.) 

All  such  credits  given  prior  to  January  1, 
1912,  and  not  brought  within  this  act, 
shall  be  subject  to  the  general  taxes  on 
such  credits  as  they  existed  prior  to  this 
act.  If  the  mortgage  is  of  land  outside 
the  state  it  is  taxable. 

(Compiled  Laws  1897,  Sec.  3831;  Stumpf  v.  Storz,  156 
Mich.  228.) 

Sec.  13.    Commercial  Paper. 

Taxable. 

(Compiled  Laws  1897,  Sees.  3824,  3831,  3842.) 


94  INVESTMENT  SECURITIES 

BANK  DEPOSITS. 


Sees. 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  Michigan  Banks. 

16.  Deposits  in  Michigan  Savings  Banks. 

17.  Deposits    in    Banks    Located    Outside 

Michigan. 

Taxable  (under  the  general  head  of  credits). 
(Compiled  Laws  1897,  Sees.  3824,  3831,  3842.) 

NOTE. —  The  taxpayer  is  entitled  to  deduct  from  the 
amount  of  all  credits  the  amount  of  all  bona  fide 
indebtedness  owed  by  him  whether  his  debtors  reside 
within  or  without  the  state.  (Compiled  Laws  1897. 
Sees.  3831,  3832,  3842.)  Bank  deposits  are  included 
among  credits,  and  it  would  seem  that  all  notes,  mort- 
gages, and  bonds  would  also  come  under  that  head  — 
cf.  Laws  1911,  No.  91,  which  speaks  of  mortgages  as 
credits. 


MINNESOTA. 


STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable  but  the  bank  pays  the  tax  for  the 
holder.    Deduction  is  allowed  for  real  es- 
tate owned  by  the  bank. 
(Rev.  Laws,  Sees.  835  (24),  840,  842.) 

(b)  Minnesota  banks. 

Same  as  national  bank  stock. 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Rev.  Laws,  Sec.  797  (10).) 

(d)  Building  and  loan  associations. 

Exempt. 

(Rev.  Laws,  Sees.  835  (23),  838.) 

2.  Public  Service  Corporation  Stocks. 

3.  Insurance  Corporation  Stocks. 

4.  Manufacturing  Corporation  Stocks. 

5.  Other  Business  Corporation  Stocks. 

{(a)  Minnesota  corporations. 
(b)  Corporations  other  than  Minnesota  corporations. 

Exempt  if  any  part  of  the  property  of  the 

corporation  is  assessed  in  the  state. 
(Rev.  Laws,  Sees.  816,  817,  818,  838;  76  Minn.  423.) 

Otherwise  taxable. 
(Sec.  816,  supra.) 

[95] 


_ 
>ecs'" 


96  INVESTMENT  SECURITIES 

Sec.  6.    Unincorporated  Association  Stocks. 

Same  as  Sec.  5. 

(Rev.  Laws,  Sees.  816,  838.) 


BONDS. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 

Sec.  8.    Minnesota  State  Bonds. 

Exempt  if  issued  since  April  18,  1911;  other- 
wise taxable  as  under  Sec.  10. 
(Acts  of  1911,  Ch.  242.) 

Sec.  9.    Minnesota  Municipal  Bonds. 

Same  as  Sec.  8. 

Sec.  10.    State  and  Municipal  Bonds  of  Other  States 

and  Countries. 

Taxable  at  three  mills  on  the  dollar  of  valua- 
tion. 

(Rev.  Laws,  Sees.  794,  797  (8),  816,  835  (23);  Acts 
1911,  Ch.  285.) 

Sec.  11.    Corporation  Bonds. 

Taxable,  but  where  the  bonds  are  secured  by 
real  estate  in  Minnesota  the  exemption 
applicable  to  ordinary  mortgage  notes  ap- 


EXEMPT  AND  TAXABLE  —  MINNESOTA  97 

plies  (see  below).   "Where  taxable  the  rate 
is  three  mills  on  the  dollar  of  valuation. 

(Same  citations.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 
Exempt. 

NOTE. —  There  is  a  recording  fee  in  lieu  of  all  other 
taxes  applicable  to  mortgages  recorded  since  April  30, 
1907.  If  the  holder  of  a  mortgage  recorded  before 
that  date  voluntarily  pays  the  recording  fee,  the  notes 
or  bonds  are  exempt.  Mortgages  of  real  estate  partly 
within  and  partly  without  the  state  are  exempt  on 
payment  of  the  recording  fee.  (Rev.  Laws,  Suppl. 
1909,  Sec.  1038,  Subds.  25-33  inclusive;  134  N.  W. 
728.)  Mortgages  held  by  national,  state,  and  savings 
banks,  and  building  and  loan  associations,  which  are 
taxed  on  capital  stock,  are  exempt.  (Rev.  Laws,  Sees. 
835  (20),  838.)  Mortgages  of  land  entirely  outside  the 
state  are  taxable  at  three  mills  on  the  dollar  of  valua- 
tion. (Acts  1911,  Ch.  285.) 

Sec.  13.    Commercial  Paper. 

Taxable  at  three  mills  on  the  dollar  of  valua- 
tion. 

(Acts  1911,  Ch.  285;  Rev.  Laws,  Sec.  798,  Subd.  2.) 

Credits  held  by  national,  state,  and  savings 
banks  which  are  taxed  on  their  capital 
stock  are  exempt. 
(Rev.  Laws,  Sees.  835  (20),  838.) 

7 


98  INVESTMENT  SECUEITIES 

BANK  DEPOSITS. 


Sees. 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  Minnesota  Banks. 

16.  Deposits  in  Minnesota  Savings  Banks. 

17.  Deposits    in    Banks    Located    Outside 

Minnesota. 

Taxable  at  three  mills  on  the  dollar  of  valua- 
tion. 

(Acts  of  1911,  Ch.  285;  Rev.  Laws,  Sec.  798   (1) ; 
134  N.  W.  643.) 


MISSISSIPPI. 


STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable  to  the  holder,  bank  to  pay  the  tax. 
(Code  1906,  Sec.  4273;  Bank  v.  Oxford,  70  Miss.  504.) 

(b)  Mississippi  banks. 

Taxed  in  the  same  manner  as  shares  in  na- 
tional banks. 
(Code  1906,  Sec.  4273;  Bank  v.  Oxford,  70  Miss.  504.) 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Code  1906,  Sec.  4260.) 

(d)  Building  and  loan  associations. 

Taxable  whether  domestic  or  foreign. 
(Code  1906,  Sees.  4257  and  4258.) 

r  2.    Public  Service  Corporation  Stocks. 
_       I  3.    Insurance  Corporation  Stocks. 
c    [  4.    Manufacturing  Corporation  Stocks. 
[  5.    Other  Business  Corporation  Stocks. 

(a)  Mississippi  corporations. 

Exempt.    (See  next  note.) 

(b)  Corporations  other  than  Mississippi  corporations. 

Taxable.     (See  next  note.) 

NOTE. —  If  incorporated  under  the  laws  of  Missis- 
sippi the  shares  of  stock  would  seem  to  be  exempt, 
[99] 


100  INVESTMENT  SECURITIES 

for  a  corporation  is  taxed  on  all  of  its  property,  and 
the  amount  of  its  capital  stock  is  used  as  a  basis  for 
determining  the  values.  (Bank  v.  Oxford,  70  Miss.  504; 
State  v.  Simmons,  70  Miss.  485.  See  also  Code  1906, 
Sees.  4267,  4382-3,  4392-3.)  If  incorporated  under 
the  laws  of  any  other  state  or  country  the  stock  is  tax- 
able under  the  general  head  of  property.  (Code  1906, 
Sec.  4257.) 

Sec.  6.    Unincorporated  Association  Stocks. 

If  treated  as  partnerships,  they  are  exempt. 
Shares  of  domestic  joint-stock  associa- 
tions are  taxed  in  the  same  manner  as 
shares  in  corporations. 
(Code  1906,  Sec.  4267.) 

BONDS. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 

Sec.  8.    Mississippi  State  Bonds. 

Taxable,  except  all  state  bonds  or  other  gov- 
ernmental obligations  issued  after  April 
1,  1906,  which  are  exempt  from  taxation 
of  any  character  whatever.  (But  see 
note  after  Sec.  13.) 
(Code  1906,  Sec.  4251w;  Laws  1908,  p.  206.) 

Sec.  9.    Mississippi  Municipal  Bonds. 

Taxable,  except  drainage  district  bonds  (Gen. 
Laws  1908,  Ch.  141),  and  all  county,  mu- 


EXEMPT  AND  TAXABLE  —  MISSISSIPPI          101 

nicipal,  levee,  or  school  bonds  issued  after 
April  1,  1906.     (But  see  note  after  Sec. 
13.) 
(Code  1906,  Sec.  4251w.) 

Sec.  10.    State  and  Municipal  Bonds  of  Other  States 
and  Countries. 

Taxable.    (But  see  note  after  Sec.  13.) 
(Code  1906,   Sec.  4257.) 

Sec.  11.    Corporation  Bonds. 

Taxable.    (But  see  note  after  Sec.  13.) 

(Code  1906,  Sec.  4257.  See  also  Laws  1910,  Ch.  196, 
requiring  holders  of  mortgage  bearer  bonds  of  cor- 
porations to  list  the  same  for  taxation  on  penalty 
of  forfeiture  of  all  interest  on  such  bonds  and  loss 
of  right  of  recovery  in  the  courts  of  this  state.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 

Taxable  whether  the  land  is  in  Mississippi  or 

elsewhere.    (But  see  note  after  Sec.  13.) 

(Code  1906,  Sees.  4257,  4266;  Adams  v.  Mortgage 

Co.,  82  Miss.  263;  Itev.  Agent  v.  Kuykendall,  83 

Miss.  571.) 

Sec.  13.    Commercial  Paper. 

Taxable. 

(Code  1906,  Sees.  4257,  4266.) 

NOTE. —  All  notes  and  evidences  of  indebtedness 
bearing  a  rate  of  interest  not  greater  than  six  per  cent, 
per  annum,  and  all  money  loaned  at  a  rate  of  interest 
not  exceeding  six  per  cent,  per  annum  is  exempt  from 
all  taxes  of  any  character  whatever.  (Code  1912,  Ch. 
241.) 


102  INVESTMENT  SECUKITIES 

BANK  DEPOSITS. 


Sees. 


'  14.    Deposits  in  National  Banks. 

15.  Deposits  in  Mississippi  Banks. 

16.  Deposits  in  Mississippi  Savings  Banks. 

17.  Deposits    in    Banks    Located    Outside 

Mississippi. 

Taxable. 

(Code  1906,  Sees.  4257,  4266.) 

NOTE. —  The  laws  of  Mississippi  purport  to  tax 
nonresidents  who  have  a  usual  place  of  business  or 
"  have  localized  property  in  this  state  so  as  to  give  it 
a  situs  here  "  on  bonds,  notes,  or  other  securities  for 
money. 
(Code  1906,  Sec.  4266;  Adams  v.  Mortgage  Co.,  82 

Miss.  263.) 

No  deduction  is  allowed  to  taxpayer  for  debts 

owing  by  him. 
(Panola  County  v.  Carrier,  etc.,  89  Miss.  283.) 


MISSOURI. 


STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable  to  the  holder,  but  the  bank  pays  the 
tax  for  the  holder.    Deduction  is  allowed 
for  real  estate  owned  by  the  bank. 
(Acts  of  1911,  p.  417.) 

(b)  Missouri  banks. 

Same  as  national  banks. 

(c)  Banks  of  other  states  and  countries. 

Exempt. 

(State  v.  Lesser,  237  Mo.  310.) 

(d)  Building   and  loan  associations. 

Taxable  if  no  loan  has  been  obtained  thereon 
from  the  association.    Otherwise  exempt. 
But  the  association  pays  the  tax  for  the 
holder. 
(Rev.  Stat.,  Sees.  11358,  11359;  145  Mo.  50.) 

The  same  rule  would  apply  to  building  and 
loan  associations  incorporated  by  some 
state  other  than  Missouri  if  doing  busi- 
ness in  Missouri. 
(Rev.  Stat.,  Sees.  3406,  11358.) 
[103] 


104  INVESTMENT  SECURITIES 

Sec.  2.    Public  Service  Corporation  Stocks. 

(a)  Missouri  corporations. 

Exempt. 

(Rev.  Stat.,  Sees.  11387,  11552.) 

(b)  Corporations  other  than  Missouri  corporations. 

Exempt. 

(State  v.  Lesser,  237  Mo.  310.) 

NOTE. —  There  is  a  possible  exception  of  shares  in 
companies   either  domestic   or  foreign  owning  craft 
navigating  the  waters  of  the  state,  which  may  be  tax- 
able. 
(Rev.  Stat.,  Sees.  11519,  11613.) 

f  3.    Insurance  Corporation  Stocks. 
Sees.  ;  4.    Manufacturing  Corporation  Stocks. 
[  5.    Other  Business  Corporation  Stocks. 

(a)  Missouri  corporations. 

Exempt. 

(Rev.   Stat.,   Sees.   11356,   11387;  Acts  of  1911,   p. 
417.) 

(b)  Corporations  other  than  Missouri  corporations. 

Exempt. 

(Rev.  St&t.,  Sec,  11387;  Acts  of  1911,  p.  417;  State 
v.  Lesser,  237  Mo.  310.) 

Sec.  6.    Unincorporated  Association  Stocks. 

These  are  treated  the  same  as  corporations. 
The  shares  are  therefore  exempt,  whether 
the  association  be  domestic  or  foreign,  ex- 
cept in  the  case  of  banks  and  building  and 
loan  associations. 

(Const.,   Art.   12,    Sec.   11;    citations   under   Sec.   5 
above;  also  Rev.  Stat.,  Sec.  11340.) 


EXEMPT  AND  TAXABLE  —  MISSOURI  105 

BONDS. 


Sees. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 

r   8.    Missouri  State  Bonds. 
9.    Missouri  Municipal  Bonds. 

10.  State  and  Municipal  Bonds  of  Other 

States  and  Countries. 

11.  Corporation  Bonds. 

Taxable  if  located  in  Missouri. 

(Rev.  Stat.,  Sees.  11348,  11519.) 

If  not  located  in  Missouri,  they  are  neverthe- 
less, taxable  if  ever  held  in  Missouri  by 
the  present  owner  and  sent  from  the  state 
by  him,  whether  to  avoid  taxation  or 
otherwise,  but  exempt  if  never  held  in 
Missouri  and  sent  away  by  him. 
(Leavell  v.  Blades,  237  Mo.  695.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 

Taxable  unless  the  land  is  outside  Missouri 
and  the  mortgage  note  never  was  in  Mis- 
souri in  the  hands  of  the  holder  and  sent 
away  again,  in  which  case  it  is  exempt. 
(Rev.  Stat.,  Sees.  11348,  11519;  Leavell  v.  Blades, 
237  Mo.  695.) 


106  INVESTMENT  SECURITIES 

Sec.  13.    Commercial  Paper. 

Taxable  if  located  in  Missouri  or  if,  having 
been  in  Missouri  in  the  hands  of  the 
holder,  he  has  sent  it  outside;  otherwise 
exempt. 

(Rev.   Stat,   Sees.   11337,   11348,   11519;   Leavell  v. 
Blades,  237  Mo.  695.) 


BANK  DEPOSITS. 


Sees.  < 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  Missouri  Banks. 

16.  Deposits  in  Missouri  Savings  Banks. 

17.  Deposits    in    Banks    Located    Outside 

Missouri. 

Taxable  as  credits. 

(Rev.  Stat.,  Sees.  11348,  11519.) 

NOTE. —  Deduction  of  debts  from  credits  appears  to 
be  allowed.  There  is  no  statute  expressly  providing 
therefor,  but  Rev.  Stat,,  Sec.  11386,  indicates  that 
such  is  the  practice. 


MONTANA. 


STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable  when  the  bank  is  located  in  the  state. 
(Pol.  C.,  Sec.  2503.) 

Otherwise  expressly  exempt. 
(Pol.  C.,  Sec.  2506.) 

Deductions  are  allowed  for  real  estate  owned 

by  the  bank. 
(Pol.  C.,  Sec.  2505.) 

(b)  Montana  banks. 

Taxable. 

(Pol.  C.,  Sec.  2503.) 

Deductions  are  allowed  for  real  estate  owned 

by  the  bank. 
(Pol.  C.,  Sec.  2505.) 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Const.,  Art.  12,  Sec.  17;  Pol.  C.,  Sec.  2498;  Daly  Bank 
v.  Board,  33  Mont.  106.) 

(d)  Building  and  loan  associations. 

Taxable  with  deduction  for  loans  advanced 

thereon  to  members. 
(Civil  C.,  Sec.  4198.) 

[107] 


108  INVESTMENT  SECURITIES 

Sec.  2.    Public  Service  Corporation  Stocks. 

(a)  Montana  corporations. 

Exempt. 

(Const.,  Art.  12,  Sec.  17;  Pol.  C.,  Sec.  2508  and  Sees. 
2525-2529,  inclusive.) 

(b)  Corporations  other  than  Montana  corporations. 

In  effect  taxable. 

(Const.,  Art.  12,  Sec.  17;  Pol.  C.,  Sec.  2498.) 

Sec.  3.    Insurance  Corporation  Stocks. 

(a)  Montana  corporations. 

Exempt. 

(Const.,  Art.  12,  Sec.  17;  Pol.  C.,  Sec.  2521.) 

(b)  Corporations  other  than  Montana  corporations. 

Same  as  domestic  when  the  corporation  is 
doing  business  in  the  state.     Shares  in 
companies  not  doing  business  in  the  state 
are  taxable. 
(Const.,  Art.  12,  Sec.  17;  Pol.  C.,  See.  2498.) 

Sec.  4.    Manufacturing  Corporation  Stocks. 

(a)  Montana  corporations. 

Exempt    when    the    corporate    property    is 
"  within  the  state  and  has  been  taxed." 
(The  courts  have  not  decided  whether  or 
not  this  means  that  all  the  property  of  the 
corporation  must  be  within  the  state  to 
entitle  its  stock  to  exemption.) 
(Const.,  Art.  12,  Sec.  17.) 
Otherwise  taxable. 

(Id.  and  Pol.  C.,  Sec.  2498.) 

(b)  Corporations  other  than  Montana  corporations. 

Same  as  Sec.  4 (a). 


EXEMPT  AND  TAXABLE  —  MONTANA          109 

Sec.  5.    Other  Business  Corporation  Stocks. 

(a)  Montana  corporations. 

Same  as  Sec.  4. 

(b)  Corporations  other  than  Montana  corporations. 

Same  as  Sec.  4. 

Sec.  6.    Unincorporated  Association  Stocks. 

Same  as  Sec.  4. 

(Const.,  Art.  12,  Sec.  17.) 


BONDS. 


Secs.^ 


Sec.  7.    United  States  Bonds. 

Exempt.     (See  p.  11.) 

r   8.    Montana  State  Bonds. 
9.    Montana  Municipal  Bonds. 
10.    State  and  Municipal  Bonds  of  Other 
States  and  Countries. 

Taxable. 

(Const.,  Art.  12,  Sec.  17;  Pol.  C.,  Sec.  2498.) 

Sec.  11.    Corporation  Bonds. 

Taxable. 

(Pol.  C.,  Sec.  2511.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 
Taxable  whether  the  real  estate  is  in  Montana 
or  elsewhere. 

(Const.,  Art.  12,  Sec.  17;  Pol.  C.,  Sees.  2498,  2511.) 


110  INVESTMENT  SECURITIES 

Sec.  13.    Commercial  Paper. 

Taxable. 

(Const.,  Art.  12,  Sec.  17;  Pol.  C.,  Sec.  2498.) 


DEPOSITS. 


Sees.* 


C  14.    Deposits  in  National  Banks. 

15.  Deposits  in  Montana  Banks. 

16.  Deposits  in  Montana  Savings  Banks. 

17.  Deposits    in    Banks    Located    Outside 

Montana. 

Taxable. 

(Const.,  Art.  12,   Sec.  17;   Pol.   C.,  Sees.  2498  and 

2511.) 

NOTE. —  Debts  may  be  deducted  from  credits. 
(Pol.  C.,  Sec.  2511.) 


NEBRASKA. 


STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable  to  the  holder,  but  the  bank  pays  the 

tax  for  the  holder. 
(Ann.  Stat.,  Sees.  10955,  11024;  77  Neb.  815.) 

Deduction  is  allowed  for  real  estate  owned  by 
the  bank,  and  for  such  of  the  personal 
property  as  is  locally  assessed. 

(Sec.  10955,  supra.) 

(b)  Nebraska  banks. 

Same  as  national  banks. 

(c)  Banks  of  other  states  and  countries. 

Taxable  to  the  holder. 

(Ann.  Stat.,  Sec.  10927;  84  Neb.  774.) 

(d)  Building  and  loan  associations. 

Shares  are  taxable,  but  are  credits;  and  de- 
duction of  debts  is  therefore  allowed,  but 
if  money  paid  on  shares  is  really  money 
invested,  it  falls  within  the  class  of  cred- 
its not  subject  to  offset  for  general  in- 
debtedness. 

(Ann.  Stat.,  Sec.  3813;  73  Neb.  453.) 
[Ill] 


112  INVESTMENT  SECUKITIES 

Sec.  2.    Public  Service  Corporation  Stocks. 

(a)  Nebraska  corporations. 

Exempt  if  the  corporation  does  business  in 

Nebraska,  otherwise  taxable. 
(Ann.  Stat.,  Sees.  10927,  10928,  11024;  84  Neb.  774.) 

(b)  Corporations  other  than  Nebraska  corporations. 

Same  as  Sec.  2  (a). 

Sec.  3.    Insurance  Corporation  Stocks. 

(a)  Nebraska  corporations. 

Practice  doubtful,  but  the  supreme  court  is  in- 
clined to  the  opinion  that  the  stock  is  tax- 
able subject  to  deduction  of  value  of  real 
estate  and  other  personal  property  sepa- 
rately assessed. 

(See  Ann.  Stat.,  Sees.  10927,  10928,  10957-10960;  70 
Neb.  529;  73  Neb.  527;  89  Neb.  469.) 

(b)  Corporations  other  than  Nebraska  corporations. 

Taxable. 

(See  citations  under  Sec.  3  (a).) 

Sec.  4.    Manufacturing  Corporation  Stocks. 

(a)  Nebraska  corporations. 

Exempt  if  the  corporation  does  business  in 

Nebraska;  otherwise  taxable. 
(Ann.  Stat.,  Sees.  10927,  10928,  11024;  84  Neb.  774.) 

(b)  Corporations  other  than  Nebraska  corporations. 

(Same  as  Sec.  4  (a).) 


EXEMPT  AND  TAXABLE  —  NEBRASKA          113 

Sec.  5.    Other  Business  Corporation  Stocks. 

(a)  Nebraska  corporations. 

(Same  as  Sec.  4  (a).) 

(b)  Corporations  other  than  Nebraska  corporations. 

(Same  as  Sec.  4  (b).) 

Sec.  6.    Unincorporated  Association  Stocks. 

Same  as  corporation  stocks. 
(Ann.  Stat.,  Sec.  10909.) 

Hence,  generally  taxable  if  the  association  is 

outside  the  state,  otherwise  exempt. 
(Ann.  Stat.,  Sees.  10927,  10928,  11024;  84  Neb.  774.) 
NOTE. —  Annotated  Statutes,  Sec.  10927,  provides 
that  all  shares  of  stock  in  corporations  or  associations 
shall  be  taxed  unless  the  capital  of  the  company  is 
taxed  in  the  state.  This  makes  taxable  the  shares  of 
all  corporations  or  associations  located  outside  the 
state.  Sec.  10928  provides  that  the  capital  stock  of 
all  companies  doing  business  in  the  state  shall  be 
taxed  except  as  otherwise  provided.  This  section 
clearly  renders  the  shares  of  such  companies  exempt 
until  the  legislature  has  seen  fit  to  make  an  exception, 
in  a  particular  case,  by  expressly  exempting  the 
capital  stock.  This  has  been  done  only  in  the  case  of 
building  and  loan  associations,  and  possibly,  though 
not  clearly,  in  the  case  of  insurance  companies.  It 
is  therefore  possible,  except  in  the  ease  of  insurance 
companies,  to  determine  the  status  of  shares  in  all 
kinds  of  companies,  domestic  or  foreign. 

Wherever  the  capital  stock  is  taxed,  the  method  of 
assessment  is  to  reckon  the  total  market  or  actual 
value  of  such  capital  stock,  deduct  the  value  of  all 
real  or  personal  property  belonging  to  the  company 
and  taxed  within  the  state,  and  tax  the  balance  as 
capital.  64  Neb.  514;  65  Neb.  714;  89  Neb.  469. 
8 


114  INVESTMENT  SECURITIES 

BONDS. 


Sees.  < 


Sec.  7.    United  States  Bonds. 

Exempt.     (See  p.  11.) 

But  if  they  are  in  fact  purchased  for  the  ex- 
press purpose  of  evading  taxes,  the  money 
invested  therein  will  be  taxed  as  such. 
(10  Neb.  154;  23  Neb.  697.) 

The  interest  is  taxed  in  any  case. 

(Ann.  Stat.,  Sec.  11024.) 

r  8.    Nebraska  State  Bonds. 
9.    Nebraska  Municipal  Bonds. 

10.  State  and  Municipal  Bonds  of  Other 

States  and  Countries. 

11.  Corporation  Bonds. 

Taxable. 

(Ann.  Stat.,  Sees.  10927,  11024.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 
Taxable,    except   mortgages    executed   after 
July  1,  1911,  which  are  not  taxed  apart 
from  the  real  estate.    Mortgages  of  real 
estate  outside  Nebraska  are  taxable. 
(Ann.  Stat.,  Sees.  11024,  11411-11415.) 

NOTE. —  Under  the  provisions  of  the  Nebraska 
statute  enacted  in  1911  (Ann.  Stat.,  Sees.  11411- 
11415),  there  is  a  distinction  between  the  note  which 


EXEMPT  AND  TAXABLE  —  NEBRASKA          115 

is  secured  by  real  estate  mortgage,  and  the  mortgage 
itself.  Under  that  act,  mortgages  of  real  estate 
executed  after  July  1,  1911,  are  treated  as  an  inter- 
est in  the  land,  and  as  to  mortgages  of  land  located 
in  the  state,  are  taxable  to  the  holder  as  real  estate, 
while  the  notes  secured  thereby  are  not  taxable  as 
such.  The  mortgagor  is  taxed  only  on  his  equity  in 
the  land  but  may  pay  the  tax  assessed  on  the  mort- 
gage. Mortgages  executed  prior  to  July  1,  1911, 
are  taxed  under  the  old  provisions  of  law,  as  credits 
or  as  money  loaned  or  invested. 

Since  the  Statute  of  1911  treats  mortgages  as 
real  estate,  they  cannot  be  taxed  as  mortgages  when 
the  land  is  located  outside  the  state.  They  can,  how- 
ever, be  taxed  as  notes,  if  a  note  has  been  given. 

All  notes  secured  by  mortgage  of  real  estate 
located  outside  the  state,  or  of  any  other  kind  of 
property  whatsoever,  are  taxable  as  credits,  or  as 
money  loaned  or  invested,  under  the  provisions  of 
Sec.  11024 ;  and  the  same  is  true  of  all  real  estate  mort- 
gages executed  prior  to  July  1,  1911.  This  distinction 
is  important  as  limiting  the  class  of  property  from 
which  debts  can  be  deducted.  (See  Sec.  13.) 

An  executory  contract  for  the  sale  of  land  is 
deemed  a  mortgage  if  the  vendee  takes  possession. 
Ann.  Stat.,  Sec.  11411. 

Mortgages  held  by  building  and  loan  associations 
are  expressly  exempt.  Ann.  Stat.,  Sec.  3818. 

Sec.  13.    Commercial  Paper. 

Taxable. 

(Ann.  Stat.,  Sec.  11024.) 

Deduction  of  debts  is  allowed  from  credits  (5 
Neb.  561;  70  Neb.  529;  73  Neb.  453) ;  and 
from  nothing  else  (32  Neb.  834).  The  defi- 


116  INVESTMENT  SECURITIES 

nition  of  credits  is  somewhat  confusing. 
It  was  held  in  73  Neb.  453,  that  notes  and 
mortgages  representing  money  loaned  or 
invested  are  not  credits.  This  was  af- 
firmed in  81  Neb.  209,  where,  however, 
the  court  held  that  a  note  secured  by  a 
purchase-money  mortgage  was  a  credit. 
In  short,  in  allowing  deduction  of  debts 
from  notes,  the  practice  seems  to  be  con- 
fined to  cases  where  there  has  been  a  sale 
of  property. 

As  to  whether  bank  deposits  are  treated  as 
credits,  the  cases  in  14  Neb.  144  and  79 
Neb.  153  appear  to  be  in  conflict.  It  is 
possible  that  a  distinction  exists  between 
different  kinds  of  deposits;  if  not,  none 
of  them  are  credits. 


BANK  DEPOSITS. 


Sees.  - 


'  14.    Deposits  in  National  Banks. 

15.  Deposits  in  Nebraska  Banks. 

16.  Deposits  in  Nebraska  Savings  Banks. 

17.  Deposits    in    Banks    Located    Outside 

Nebraska. 

Taxable. 

(Ann.  Stat.,  Sees.  10903,  10927,  11024.) 


NEVADA. 


STOCKS. 

Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable  to  the  holder,  but  the  bank  pays  the 
tax  for  the  holder  and  is  liable  therefor. 
(Revised  Laws  of  Nevada,  1912,  Sees.  3820,  3824.) 

Deductions  are  allowed  for  real  estate  owned 

by  the  bank. 
(R.  L.  (1912),  Sees.  3790,  3820.) 

(b)  Nevada  banks. 

Same  as  national  banks. 

(c)  Banks  of  other  states  and  countries. 

Same  as  national  banks  if  located  in  the  state. 

If  located  elsewhere,  taxable. 
(R.  L.  (1912),  Sees.  3621,  3622,  3629.) 

(d)  Building  and  loan  associations. 

Treated    like    other    business    corporations. 
(See  Sees.  2-5.) 

Public  Service  Corporation  Stocks. 
Insurance  Corporation  Stocks. 
Manufacturing  Corporation  Stocks. 
5.    Other  Business  Corporation  Stocks. 

[117] 


118  INVESTMENT  SECURITIES 


(a)  Nevada  corporations. 

(b)  Corporations  other  than  Nevada  corporations. 

Exempt  if  the  entire  capital  of  the  corpora- 
tion is  invested  in  property  which  is  as- 
sessed or  if  the  capital  is  assessed. 
(R.  L.  (1912),  Sec.  3629.) 

Otherwise  taxable. 

(R.  L.  (1912),  Sees.  3621,  3622.) 

NOTE. —  In  practice  shares  would  seem  to  be  exempt 
to  the  holder  if  the  corporation  does  business  and  has 
an  office  in  Nevada;  otherwise  taxable. 

Sec.  6.    Unincorporated  Association  Stocks. 
Same  as  Sees.  2-5. 


BONDS. 


Secs.^ 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 

8.  Nevada  State  Bonds. 

9.  Nevada  Municipal  Bonds. 

10.  State  and  Municipal  Bonds  of  Other 

States  and  Countries. 

11.  Corporation  Bonds. 

Taxable. 

(R.  L.  (1912),  Sees.  3621,  3622.) 


EXEMPT  AND  TAXABLE  —  NEVADA  119 

NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 

Taxable  whether  the  land  is  located  in  Ne- 
vada or  elsewhere. 

(R.  L.  (1912),  Sees.  3621,  3622;  State  v.  Carson  Sav- 
ings Bank,  17  Nev.  146.) 

NOTE.— By  Acts  1911,  Ch.  170  (R.  L.  (1912),  Sees. 
3786-3790  inclusive),  a  different  method  was  provided 
for  taxing  mortgages  of  Nevada  real  estate,  from  that 
adopted  for  foreign  mortgages.  This  enactment,  how- 
ever, was  repealed  by  Acts  of  the  Special  Session  of 
1912,  chapter  8.  All  mortgages,  therefore,  are  now 
taxable  as  "  money  at  interest,"  under  sections  3621 
and  3622,  supra,  the  language  of  which  is  broad  enough 
to  include  them  all. 

Sec.  13.    Commercial  Paper. 

Taxable. 

(R.  L.  (1912),  Sees.  3621,  3622.) 

NOTE. —  The  taxpayer  is  assessed  on  his  unsecured 
credits  only  for  the  balance  after  deducting  the  sum 
of  all  unsecured  debts  owing  by  him  (R.  L.  (1912.), 
Sec.  3622).  No  deduction  whatever  is  allowed  from 
credits  secured  by  mortgage.  (Drexler  v.  Tyrrell,  15 
Nev.  114.) 


120  INVESTMENT  SECURITIES 

DEPOSITS. 


Sees. 


f  14.    Deposits  in  National  Banks. 

15.  Deposits  in  Nevada  Banks. 

16.  Deposits  in  Nevada  Savings  Banks. 

17.  Deposits    in    Banks    Located    Outside 

Nevada. 

Taxable. 

(R.  L.  (1912),  Sees.  3621,  3622.) 


NEW  HAMPSHIRE. 


STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable,  but  deduction  is  made  for  real  estate 

owned  by  the  bank. 
(P.  S.,  Ch.  65,  Sec.  1.) 

(b)  New  Hampshire  banks. 

Shares  in  Savings  Banks  and  Trust  Com- 
panies are  exempt. 
(P.  S.,  Ch.  65,  Sec.  12.) 

Shares  in  other  banks  are  taxable  like  those 
of  National  Banks. 
(See  Sec.  1  (a).) 

(c)  Banks  of  other  states  and  countries. 

Exempt  in  practice;  in  theory  taxable  except 
in  so  far  as  the  stock  or  the  property 
represented  by  it  is  taxed  in  the  towns  or 
states  where  the  corporation  is  located. 
(See  note  under  Sec.  2.) 
(P.  S.,  Ch.  55,  Sec.  7  (3).) 

(d)  Building  and  loan  associations. 

Exempt  in  practice. 

(P.  S.,  Ch.  65,  Sec.  12;  Acts  1903,  Ch.  126.) 

Sec.  2.    Public  Service  Corporation  Stocks. 

(a)  New  Hampshire  corporations. 

Exempt  in  practice;  in  theory  taxable  except 
in  so  far  as  corporate  estate  or  property 

[121] 


122  INVESTMENT  SECURITIES 

is  taxed  directly  to  the  corporation.    (See 
next  note.) 

(P.  S.,  Ch.  55,  Sec.  7  (2) ;  Ch.  169  of  1911,  Sec.  26, 
repealing  P.  S.,  Ch.  64,  Sec.  12.) 

(b)  Corporations  other  than  New  Hampshire  corporations. 

Exempt  in  practice;  in  theory  taxable  except 
in  so  far  as  the  stock  or  property  repre- 
sented by  it  is  taxed  in  the  towns  or  states 
where  the  corporation  is  located.  (See 
note.) 
(P.  S.,  Ch.  55,  Sec.  7  (3).) 

NOTE. — The  New  Hampshire  assessors  presume  that 
all  property  owned  by  corporations  is  taxed  to  its 
full  value,  whether  located  within  or  without  the  state. 
It  would,  therefore,  be  regarded  as  double  taxation, 
forbidden  by  the  statute,  to  place  a  tax  on  the  share 
of  stock  whose  value  depends  on  the  value  of  prop- 
erty already  fully  taxed.  Kimball  v.  Milford,  54 
N.  H.  406.  And  in  practice  neither  foreign  nor  do- 
mestic stock  is  taxed. 

Sec.  3.  Insurance  Corporation  Stocks. 

(a)  New  Hampshire  corporations. 

Exempt  in  practice.    (See  note  after  Sec.  2.) 
Stock  in  fire  insurance  companies  is  also 
specifically  exempt. 
(P.  S.,  Ch.  65,  Sees.  8-12.) 

(b)  Corporations  other  than  New  Hampshire  corporations. 

Exempt  in  practice.     (See  note  after  Sec.  2.) 


EXEMPT  AND  TAXABLE  —  NEW  HAMPSHIRE    123 

Sec.  4.    Manufacturing  Corporation  Stocks. 

(a)  New  Hampshire  corporations. 

Exempt  in  practice.  (See  note  after  Sec.  2.) 
They  may  be  also  specifically  exempt  by 
vote  of  town  in  which  corporation  is 
located. 

(P.  S.,  Ch.  55,  Sec.  11,  as  amended  by  Acts  1909, 
Ch.  166.) 

(b)  Corporations  other  than  New  Hampshire  corporations. 

Exempt  in  practice.     (See  note  after  Sec.  2.) 

Sec.  5.    Other  Business  Corporation  Stocks. 

(a)  New  Hampshire  corporations. 

Exempt  in  practice.     (See  note  after  Sec.  2.) 

(b)  Corporations  other  than  New  Hampshire  corporations. 

Exempt  in  practice.     (See  note  after  Sec.  2.) 

Sec.  6.    Unincorporated  Association  Stocks. 
Exempt. 

(Kimball  v.  Milford,  54  N.  H.  406.) 


BONDS. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 

Sec.  8.    New  Hampshire  State  Bonds. 

They  are  usually  tax  exempt  by  statute  au- 
thorizing the  issue,  but  if  not  so  exempt 
are  taxable.  (But  see  note  after  Sec.  17.) 
(P.  S.,  Ch.  55,  Sec.  7  (1).) 


124  INVESTMENT  SECUKITIES 

Sec.  9.    New  Hampshire  Municipal  Bonds. 

Taxable.  (But  see  note  after  Sec.  17.)  Town, 
city,  precinct,  or  village  district  bonds 
(not  county)  may  be  exempt  by  special 
vote  of  the  municipality  when  held  by  a 
citizen  thereof.  Applies  to  issues  since 
1907  only. 
(P.  S.,  Ch.  55,  Sec.  7  (1) ;  Acts  1907,  Ch.  55.) 

Sec.   10.     State   and   Municipal   Bonds   of   Other 

States  and  Countries. 
Taxable.     (But  see  note  after  Sec.  17.) 
(P.  S.,  Ch.  55,  Sec.  7  (1). 

Sec.  11.    Corporation  Bonds. 

Taxable.     (But  see  note  after  Sec.  17.) 
(P.  S.,  Ch.  57,  Sec.  7  (1).) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 
Exempt  if  secured  by  New  Hampshire  realty 
at  a  rate  of  interest  not  exceeding  5  per 
cent.;  otherwise  taxable.     (But  see  note 
after  Sec,  17.) 
(Acts  1911,  Ch.  83.) 

Sec.  13.    Commercial  Paper. 

Taxable.     (But  see  note  after  Sec.  17.) 
(Acts  1911,  Ch.  83.) 


EXEMPT  AND  TAXABLE  —  NEW  HAMPSHIRE    125 
BANK  DEPOSITS. 


Sec.  14.    Deposits  in  National  Banks. 
Taxable.     (But  see  note  after  Sec.  17.) 
(Acts  1911,  Ch.  83.) 

Sec.  15.    Deposits  in  New  Hampshire  Banks. 
Exempt. 

(P.  S.,  Ch.  65,  S«c.  12.) 

Sec.  16.  Deposits  in  New  Hampshire  Savings  Banks. 
Exempt. 

(P.  S.,  Ch.  65,  Sec.  12;  Acts  1911,  Ch.  194.) 

Sec.  17.    Deposits  in  Banks  Located  Outside  New 
Hampshire. 

Taxable.     (But  see  next  note.) 

(P.  S.,  Ch.  55,  Sec.  7,  Subd.  5,  as  amended  by  Acts 
1911,  Ch.  83.) 

NOTE. — All  obligations  due  the  taxpayers  are  taxed 
under  a  statute  in  which  they  are  referred  to  as  in- 
cluded in  the  phrase  "  money  on  hand  or  at  in- 
terest more  than  the  owner  pays  interest  for."  Under 
this  the  taxpayer  may  deduct  the  total  of  his  interest- 
bearing  debts  from  the  total  of  obligations  due  him, 
and  in  practice  he  may  even  deduct  it  from  the  value 
of  such  few  stocks  as  remain  taxable. 
(P.  S.,  Ch.  55,  Sec.  5,  as  amended  by  Acts  1911, 

Ch.  83.) 


NEW  JERSEY. 


STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable.  Deduction  is  allowed  for  bank's 
realty  and  nontaxable  securities,  and 
debts  owing  by  the  shareholder  to  resi- 
dents, if  unsecured  by  realty. 
(Tax  Act  of  1903,  Sec.  17,  as  amended  by  P.  L.  1905, 
p.  382;  P.  L.  1905,  p.  457;  Tax  Act  of  1903, 
Sec.  10,  as  amended  by  P.  L.  1904,  p.  238;  Tax 
Act  of  1903,  Sec.  13  (P.  L.  1903,  p.  401);  Lip- 
pincott  v.  Lippincott,  75  N.  J.  L.  795  (1907).) 

(b)  New  Jersey  state  banks. 

Same  as  national  banks.  This  does  not  in- 
clude shares  in  New  Jersey  trust  com- 
panies, which  are  exempt. 
(Tax  Act  of  1903,  Sec.  3  (5)  (P.  L.  of  1903,  p.  394) ; 
Sec.  18  (P.  L.  1903,  p.  405).  See  Newark  v.  Tunis, 
81  N.  J.  L.  45  (1911).) 

(c)  Banks  of  other  states  and  countries. 

Taxable,  unless  a  tax  has  been  paid  on  such 

stock  or  the  property  represented  by  it 

within  twelve  months  to  such  other  state 

or  sovereignty. 

(Tax  Act  of  1903,  Sec.  2  (P.  L.  1903,  p.  394);  Sec. 

3  (1)  (P.  L.  1903,  p.  394). 

(Trenton  v.  Standard  Fire  Ins.  Co.,  76  N.  J.  L.  79 
(1908).) 

[126] 


EXEMPT  AND  TAXABLE  —  NEW  JERSEY        127 

(d)  Building  and  loan  associations. 

Exempt  if  organized  under  the  laws  of  New 

Jersey. 

(Tax  Act  of  1903,  Sec.  3  (5)  (P.  L.  1903,  p.  394); 
Sec.  16  (P.  L.  1903,  p.  404). 

State,  W.  B.  &  L.   Ass'n,  pros.  v.  Hornbaker,  41 
N.  J.  L.  519  (1879).) 

Sec.  2.    Public  Service  Corporation  Stocks. 

(a)  New  Jersey  corporations. 

Exempt. 

(P.  L.  1888,  p.  269;  Tax  Act  of  1903,  Sec.  3  (5) 
(P.  L.  1903,  p.  394),  Sec.  3  (8)  (P.  L.  1903,  p. 
394) ;  P.  L.  1906,  pp.  121,  644  and  648.) 

(b)  Corporations  other  than  New  Jersey  corporations. 

Exempt  if  doing  business  in  New  Jersey; 
otherwise  taxable  unless  tax  has  been 
paid  within  twelve  months  on  the  stock 
or  property  represented  by  it  to  the  for- 
eign jurisdiction. 

(P.  L.  1888,  p.  272;   Tax  Act  of  1903,   Sec.  3   (1) 
(P.  L.  1903,  p.  394) ;  P.  L.  1906,  p.  644.) 
NOTE. —  Only   railroad,    street   railway,    and    canal 
companies  are  included  under  this  classification ;  other 
public  utilities  come  under  the  general  tax  act. 

r  3.    Insurance  Corporation  Stocks. 
Secs.J  4.    Manufacturing  Corporation  Stocks. 

[  5.    Other  Business  Corporation  Stocks, 
(a)  New  Jersey  corporations. 

Exempt. 

(Tax  Act  of  1903,  Sec.  3  (5)  (P.  L.  1903,  p.  394); 
Sec.  16  (P.  L.  1903,  p.  404) ;  Sec.  18  (P.  L.  1903, 
p.  405);  P.  L.  1906,  p.  148;  P.  L.  1908,  p.  720.) 


128  INVESTMENT  SECURITIES 

(b)  Corporations  other  than  New  Jersey  corporations. 

Taxable  unless  tax  has  been  paid  on  stock  or 
property  represented  by  it  to  foreign 
jurisdiction  within  twelve  months. 
(Tax  Act  of  1903,  Sec.  2  (P.  L.  1903,  p.  394),  Sec. 
3  (1)  (P.  L.  1903,  p.  394) ;  Trenton  v.  Standard 
Fire  Ins.  Company,  76  N.  J.  L.  79  (1908).) 

Sec.  6.    Unincorporated  Association  Stocks. 

No  express  statute  except  in  the  case  of  rail- 
road and  canal  companies  (P.  L.  1888,  pp. 
269  and  284)  but  probably  exempt  under 
wording  of  the  decisions. 
(Jersey  City  Gaslight  Co.  v.  Jersey  City,  46  N.  J.  L. 
194  (1884);  Trenton  v.  Standard  Fire  Ins.  Co., 
77  N.  J.  L.  757  (1909).) 


BONDS. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 

Sec.  8.    New  Jersey  State  Bonds. 

Exempt. 

(Tax  Act  of  1903,  Sec.  3  (1)   (P.  L.  1903,  p.  394).) 

Sec.  9.    New  Jersey  Municipal  Bonds. 

Exempt. 

(Tax  Act  of  1903,  Sec.  3  (1)  (P.  L.  1903,  p.  394).) 

Sec.   10.     State   and   Municipal   Bonds   of   Other 

States  and  Countries. 
Taxable. 

(Tax  Act  of  1903,  Sec.  2  (P.  L.  1903,  p.  394).) 


EXEMPT  AND  TAXABLE  —  NEW  JERSEY        129 

Sec.  11.    Corporation  Bonds. 

Taxable  unless  secured  by  New  Jersey  realty 
or  in  case  of  bonds  of  a  railroad  or  canal 
company  operating  in  New  Jersey  which 
does  not  claim  an  exemption  for  the  debt 
represented  thereby. 

(P.  L.  1888,  pp.  272  and  273;  Tax  Act  of  1903, 
Sec.  2  (P.  L.  1903,  p.  394),  Sec.  10  (P.  L.  1903, 
p.  400),  as  amended  by  P.  L.  1904,  p.  238.) 


NOTES. 


Sec.  12.     Notes  Secured  by  Real  Estate  Mortgages. 

Exempt  if  realty  is  in  New  Jersey;  taxable 

otherwise. 

(Tax  Act  of  1903,  Sec.  2  (P.  L.  1903,  p.  394);  Sec. 
10  (P.  L.  1903,  p.  400),  as  amended  as  aforesaid; 
Hartshorne  v.  Avon,  75  N.  J.  L.  407  (1907).) 

But  mortgages  on  exempt  realty  are  them- 
selves exempt. 
(P.  L.  1905,  p.  308.) 

Sec.  13.    Commercial  Paper. 

Taxable,  except  in  case  of  paper  of  a  railroad 
or  canal  company  operating  in  New  Jer- 
sey which  does  not  claim  an  exemption 
for  the  debt  represented  thereby. 
(P.  L.  1888,  pp.  272,  273;  Tax  Act  of  1903,  Sec.  2 
(P.  L.  1903,  p.  394).) 

9 


130  INVESTMENT  SECUEITIES 

BANK  DEPOSITS. 


Sec.  14.    Deposits  in  National  Banks. 

Taxable. 

(Tax  Act  of  1903,  Sec.  2  (P.  L.  1903,  p.  394).) 

Sec.  15.    Deposits  in  New  Jersey  Banks. 
Taxable.     (Same  as  Sec.  14.) 

Sec.  16.    Deposits  in  New  Jersey  Savings  Banks. 

Probably  exempt. 

(Tax  Act  cf  1903,  Sec.  2  (P.  L.  1903,  p.  394);  Sec. 
3  (1)  (P.  L.  1903,  p.  394).) 

Sec.  17.    Deposits  in  Banks  Located  Outside  New 

Jersey. 

Taxable,  unless  the  tax  has  been  paid  thereon 
to  the  foreign  jurisdiction  within  twelve 
months,  in  which  case  they  are  exempt. 
(Tax  Act  of  1903,  Sec.  2;  Sec.  3,  Subd.  1.) 

NOTE  1.  In  the  case  of  all  assessments  on  personalty, 
there  is  a  deduction  for  the  taxpayer's  debts  owing 
to  residents  of  New  Jersey,  if  unsecured  by  realty. 
(Tax  Act  of  1903,  Sec.  13  (P.  L.  1903,  p.  401).) 

NOTE  2.  The  tax  on  foreign  stocks  and  bonds  seems 
not  to  be  assessed  in  practice. 


NEW  MEXICO. 


STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable  to  the  shareholders,  without  deduc- 
tion for  real  estate,  which  is  accordingly 
exempt. 

(Laws  1907,  Ch.  103,  Sees.  2  and  3,  superseding  Comp. 
Laws,  Sec.  259.) 

In  general  the  tax  is  paid  for  the  shareholder 

by  the  bank. 
(Laws  1907,  Ch.  103,  Sec.  2.) 

But  a  national  bank  cannot  be  made  primarily 
liable  for  such  taxes  unless  it  lists  the 
shares  voluntarily. 

(5  N.  M.  664.) 

(b)  New  Mexico  banks. 

Taxable  to  the  holder,  but  the  bank  pays  the 

tax  for  the  holder. 
(Laws  1907,  Ch.  103,  Sec.  2.) 

No  deduction  for  real  estate. 

(Session  Laws  of  1907,  Ch.  103,  Sec.  3,  superseding 
Comp.  Laws,  Sec.  259.) 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Comp.  Laws,  Sees.  4018,  4019,  4032,  and  by  inference 
from  Sec.  4025.) 

[131] 


132  INVESTMENT  SECURITIES 

(d)  Building  and  loan  associations. 

Taxable. 

(Comp.  Laws,  Sees.  4018,  4019,  4032;  10  N.  M.  337.) 

Sec.  2.    Public  Service  Corporation  Stocks. 

(a)  New  Mexico  corporations. 

Exempt  in  the  hands  of  the  holder  if  all  the 
property  of  the  corporation  is  in  the 
state;  otherwise  taxable,  except  that  rail- 
road stock  is  exempt  during  a  six-year 
"  building  period."  (See  notes  1  and  2 
after  Sec.  6.) 
(Comp.  Laws,  Sees.  1761,  4018,  4025,  4032.) 

(b)  Corporations  other  than  New  Mexico  corporations. 

In  effect  taxable.     (See  notes  1  and  2  after 

Sec.  6.) 
(Comp.  Laws,  Sees.  4018,  4019,  4032.) 

Sec.  3.    Insurance  Corporation  Stocks. 

(a)  New  Mexico  corporations. 

Exempt  if  the  entire  property  or  capital  of 
the  corporation  is  assessed  in  the  state; 
otherwise  taxable.     (See  note  1  after  Sec. 
6.) 
(Comp.  Laws,  Sees.  4018,  4019,  4025,  4032.) 

(b)  Corporations  other  than  New  Mexico  corporations. 

Same  as  Sec.  3  (a). 


EXEMPT  AND  TAXABLE  —  NEW  MEXICO         133 

Sec.  4.    Manufacturing  Corporation  Stocks. 

(a)  New  Mexico  corporations. 

Shares  are  exempt  as  such  if  the  corporate 
property  is  taxed  in  the  state.   (See  notes 
1  and  2  after  Sec.  6.) 
(Comp.  Laws,  Sec.  4025.) 

When  the  corporate  property  is  outside  the 

state,  the  shares  are  taxable. 
(Comp.  Laws,  Sees.  4018,  4019,  4032.) 

(b)  Corporations  other  than  New  Mexico  corporations. 

Same  as  Sec.  4  (a). 

Sec.  5.    Other  Business  Corporation  Stocks. 

(a)  New  Mexico  corporations. 

Same  as  Sec.  4. 

(b)  Corporations  other  than  New  Mexico  corporations. 

Same  as  Sec.  4. 

Sec.  6.    Unincorporated  Association  Stocks. 

Same  as  Sees.  4  and  5. 

(Comp.  Laws,  Sees.  4018,  4019,  4025,  4032;  10  N.  M. 
337.) 

NOTE  1.  Compiled  Laws  of  New  Mexico,  Sec.  4025, 
provides  that  all  corporations  shall  be  taxed  on  their 
property  within  the  state,  but  that  they  may  charge 
these  taxes  to  the  shareholders.  The  provision,  if 
acted  upon  by  the  corporations,  would  have  the  effect 
of  taxing  each  shareholder  to  the  extent  of  his  hold- 
ings, and  would  thereby  in  practice  nullify  the  fur- 
ther clause  of  Sec.  4025,  "  The  owner  or  holder  of 
stocks  in  any  firm  or  corporation,  the  entire  capital  or 


134  INVESTMENT  SECUKITIES 

property  of  which  is  assessed,  must  not  be  assessed 
individually  for  such  stocks."  The  provision,  how- 
ever, is  not  mandatory,  but  directory. 

NOTE  2.  The  following  enactments  relate  to  public 
service  and  manufacturing  corporations,  either  do- 
mestic or  foreign,  doing  business  in  the  state:  Const., 
Sec.  121;  Comp.  Laws,  Sees.  1756,  1758,  1761,  3880, 
3881;  Session  Laws  of  1907,  Ch.  12.  These  enact- 
ments, while  differing  in  detail,  provide  generally  that 
all  such  companies  within  the  state  shall  be  exempt 
from  taxation  for  a  period  of  six  years  after  the  com- 
mencement of  operation. 

In  3  N.  M.  126,  it  was  held  that  this  exemption  was 
valid  under  the  constitution,  and  that  it  extended  to 
and  included  the  capital  stock.  This  is  .an  exception 
to  the  general  rule  regarding  public  service  com- 
panies and  corporations  in  general. 


BONDS. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 

Sec.  8.    New  Mexico  State  Bonds. 
Exempt. 

(Const.,  Sec.  120.) 

Sec.  9.    New  Mexico  Municipal  Bonds. 
Exempt. 

(Const.,  Sec.  120.) 

Sec.   10.     State   and   Municipal   Bonds   of   Other 

States  and  Countries. 
Taxable. 

(Comp.  Laws,  Sees.  4018,  4019,  4032.) 


EXEMPT  AND  TAXABLE  —  NEW  MEXICO         135 

Sec,  11.    Corporation  Bonds. 

Taxable. 

(Same  citations.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 

Taxable  whether  the  real  estate  is  in  New 

Mexico  or  elsewhere. 
(Comp.  Laws,  Sees.  4018,  4019,  4032;  10  N.  M.  337.) 

Sec.  13.    Commercial  Paper. 

Taxable. 

(Comp.  Laws,  Sees.  4018,  4019,  4025,  4032.) 

But  deduction  of  debts  from  credits  is  allowed. 
(Comp.  Laws,  Sec.  4029.) 


BANK  DEPOSITS. 


Sees. 


r  14.    Deposits  in  National  Banks. 

15.  Deposits  in  New  Mexico  Banks. 

16.  Deposits  in  New  Mexico  Savings  Banks. 

17.  Deposits  in  Banks  Located  Outside  New 

Mexico. 

Taxable. 

(Comp.  Laws,  Sees.  4018,  4019,  4032.) 


NEW  YORK. 

STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable  to  the  holder,  but  the  bank  pays  the 

tax  for  the  stockholder. 
(Consolidated  Laws,  Ch.  60,  Sees.  13  and  24.) 

(b)  New  York  banks. 

Taxable  to  the  holder,  but  the  bank  pays  the 

tax  for  the  stockholder. 
(C.  L.,  Ch.  60,  Sees.  13  and  24.) 

NOTE. —  This  does  not  include  trust  companies, 
which  are  moneyed  corporations,  not  banks,  and  are 
exempt. 

(C.  L.,  Ch.  60,  Sees.  188  and  205;  Mercantile  Bank  v. 
New  York,  121  U.  S.  138  (1887).) 

(c)  Banks  of  other  states  and  countries. 

Exempt. 

(C.  L.,  Ch.  60,  Sec.  4  (16) ;  4  Hun,  595,  (1875).) 

(d)  Building  and  loan  associations.     (Under  the  name  of 

"  Co-operative  Savings  and  Loan  Associations  "  and 
"  Building  and  Lot  Associations."  C.  L.,  Ch.  2, 
Sec.  2.) 

Exempt. 

(C,  L.,  Ch.  2,  Sec.  227;  Ch.  60,  Sec.  4  (14).) 
[136] 


EXEMPT  AND  TAXABLE  —  NEW  YORK  137 

f  2.    Public  Service  Corporation  Stocks. 
IS,    Insurance  Corporation  Stocks. 
>ecs, ,  4     Manufacturing  Corporation  Stocks. 
[  5.    Other  Business  Corporation  Stocks. 

(a)  New  York  corporations. 

(b)  Corporations  other  than  New  York  corporations. 

All  exempt. 

(C.  L.,  Ch.  60,  Sec.  4  (16);  Sees.  12,  27  and  32;  4 
Hun,  595  (1875).) 

Sec.  6.    Unincorporated  Association  Stocks. 

Taxable. 

(C.  L.,  Ch.  29,  See.  2;  133  N.  Y.  279  (1892) ;  C.  L., 
Ch.  60,  Sec.  2  (5);  Sec.  3.) 

Under  172  N.  Y.  575  (1902),  such  shares  are 
personalty,  whether  representing  real  or 
personal  property.  (See  note  at  end  of 
Sec.  17.) 


BONDS. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 

NOTE.—  By  the  "  Secured  Debt  Law  "  (Laws  1911, 
Ch.  802),  the  following  instruments  or  obligations  are 
exempt  if  they  have  stamps  affixed  showing  that  a  tax 
of  one-half  per  cent,  of  the  face  value  has  been  paid 
the  state  comptroller:  any  bond,  note,  or  debt  secured 
by  mortgage  of  real  property  recorded  anywhere  ex- 
cept in  New  York;  any  bond,  note,  written  or  printed 


138  INVESTMENT  SECUKITIES 

obligation  forming  part  of  a  series  secured  by  mort- 
gage or  trust  deed  of  realty  or  personalty  recorded 
anywhere  except  in  New  York;  any  bond,  note,  writ- 
ten or  printed  obligation  forming  part  of  a  series 
secured  by  deposit  of  collateral;  any  bond,  debenture, 
or  note  forming  part  of  a  series  not  payable  within 
one  year,  no  one  of  which  is  issued  for  an  amount 
exceeding  one  thousand  dollars,  and  which  are  not 
secured  by  collateral. 

This  statute  would  seem  to  include  practically  all 
bonds  or  notes  except  short  time  unsecured  obligations 
and  those  secured  by  realty  mortgages  recorded  in 
New  York.  The  latter,  however,  by  another  statute 
(see  Sec.  12  below)  are  exempt  from  taxation  by  the 
terms  of  the  act  imposing  a  recording  tax  on  mort- 
gages of  New  York  real  estate.  The  following  sec- 
tions therefore  should  be  taken  in  connection  with 
this  note  and  are  not  meant  to  cover  obligations  com- 
ing under  the  Secured  Debt  Law.  Furthermore,  the 
note  after  Sec.  17,  concerning  deductions  for  debts, 
should  also  be  borne  in  mind. 

Sec.  8.    New  York  State  Bonds. 
Taxable,  except  highway,  canal,  and  terminal 

bonds.     (See  note  after  Sec.  7.) 
(C.  L.,  Ch.  60,  Sees.  2  (5),  3  and  4  (6);  Laws  1911, 
Ch.  746.) 

Sec.  9.    New  York  Municipal  Bonds. 

Exempt.     (See  note  after  Sec.  7.) 
(C.  L.,  Ch.  24,  Sec.  8;  Ch.  60,  Sec.  4  (6).) 

Sec.   10.     State   and   Municipal   Bonds   of   Other 
States  and  Countries. 

Taxable.     (See  note  after  Sec.  7.) 
(C.  L.,  Ch.  60,  Sec.  2  (5) ;  Sec.  3.) 


EXEMPT  AND  TAXABLE  —  NEW  YORK 


Sec.  11.    Corporation  Bonds. 

Taxable.     (See  note  after  Sec.  7.) 

(C.  L.,  Ch.  60,  Sees.  2  (5),  3;  4  Hun,  595  (1875); 
138  N.  Y.  543  (1893).) 

Except  if  secured  by  realty  mortgage  re- 
corded in  New  York  since  July  1,  1906, 
exempted  by  payment  of  one-half  per 
cent,  of  face  value,  which  fact  is  stamped 
on  the  face  of  the  bonds.  (See  Sec.  12.) 

(C.  L.,  Ch.  60,  Sees.  259  and  264,  as  amended  by 
Laws  1910,  Ch.  601.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 

(a)  Mortgages  of  New  York  real  estate. 

Exempt  if  made  or  recorded  after  July  1, 
1906;  or  if  mortgage  tax  of  one-half  per 
cent,  of  the  amount  remaining  due  since 
July  1,  1906,  has  been  paid. 
(C.  L.,  Ch.  60,  Sees.  251,  253,  254,  259,  264,  as 
amended  by  Laws  1910,  Ch.  601.) 

Otherwise  taxable.    (See  note  after  Sec.  7.) 
(C.  L.,  Ch.  60,  Sees.  2   (5),  3;  121  App.  Div.  559 
(1907).) 

(b)  Mortgages  of  real  estate  outside  New  York. 

Exempt  on  payment  of  fee  of  one-half  per 
cent,  on  the  amount  secured.     (See  note 
after  Sec.  7.) 
(Acts  of  1911,  Ch.  802.) 


140  INVESTMENT  SECURITIES 

Sec.  13.    Commercial  Paper. 

Taxable.     (See  note  after  Sec.  17.) 
(C.  L.,  Ch.  60,  Sees.  2  (5),  3.) 


BANK  DEPOSITS. 


Sec.  14.    Deposits  in  National  Banks. 

Taxable.     (See  note  after  Sec.  17.) 

(C.  L.,  Ch.  60,  Sees.  2  (5),  3;  150  N.  Y.  37  (1896).) 

Sec.  15.    Deposits  in  New  York  Banks  and  Trust 
Companies. 

Taxable.     (See  note  after  Sec.  17.) 

(C.  L.,  Ch.  60,  Sees.  2  (5),  3;  Matter  of  Houdayer, 
150  N.  Y.  37  (1896).) 

Sec.  16.    Deposits  in  New  York  Savings  Banks. 
Exempt. 

(C.  L.,  Ch.  60,  Sec.  4  (14);  Heermance  v.  Dederick, 
158  N.  Y.  414  (1899).) 

Sec.  17.    Deposits  in  Banks  Located  Outside  New 

York. 

Deposits  in  savings  banks  are  exempt. 
(C.  L.,  Ch.  60,  Sec.  4,  Subd.  14;  158  N.  Y.  414.) 

All  other  foreign  deposits  are  taxable. 
(C.  L.,  Ch.  60,  Sees.  2  (5),  3.) 

NOTE. —  In  making  up  the  assessment-roll,  the  just 
debts  owing  are  deducted  from  the  taxable  personal 
property.  (C.  L.,  Ch.  60,  Sec.  21  (4),  and  also  Sec. 
6.)  This  applies  to  all  taxable  personalty  except  bank 
stock. 


NORTH  CAROLINA. 


STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable. 

(P.  L.  1911,  Ch.  50,  Sec.  42.) 

(b)  North  Carolina  banks. 

Taxable,  including  savings  bank  shares. 
(P.  L.  1911,  Ch.  50,  Sec.  42.) 

NOTE. —  State  taxes  are  paid  by  the  bank.     Local 
taxes  are  paid  by  resident  shareholders,  but  the  bank 
pays  the  local  taxes  for  nonresident  shareholders  and 
deducts  the  same  from  their  dividends. 
(P.  L.  1911,  Ch.  50,  Sec.  42.) 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(P.  L.  1911,  Ch.  50,  Sec.  41.) 

(d)  Building  and  loan  associations. 

Exempt  in  the  hands  of  the  holder  as  to  both 
foreign  and  domestic  associations  doing 
business  in  North  Carolina.  The  asso- 
ciation pays  the  tax,  and  deduction  is 
made  for  loans  to  the  shareholders. 
(P.  L.  1911,  Ch.  50,  Sees.  44,  47.) 

Sec.  2.    Public  Service  Corporation  Stocks, 
(a)  North  Carolina  corporations. 

Exempt. 

(P.  L.  1911,  Ch.  50,  Sees.  48-53,  inc.,  56,  61-64.) 
[141] 


142  INVESTMENT  SECURITIES 

(b)  Corporations  other  than  North  Carolina  corporations. 

Exempt  if  doing  business  in  the  state,  other- 
wise taxable. 
(P.  L.  1911,  Ch.  50,  Sees.  48-53,  inc.,  56,  61-64.) 

f  3.    Insurance  Corporation  Stocks. 
Sees,  -j  4.    Manufacturing  Corporation  Stocks. 
[  5.    Other  Business  Corporation  Stocks. 

(a)  North  Carolina  corporations. 

Exempt. 

(P.  L.  1911,  Ch.  46,  Sec.  67;  Ch.  50,  Sec.  41.) 

(b)  Corporations  other  than  North  Carolina  corporations. 

Taxable. 

(P.  L.  1911,  Ch.  50,  Sec.  41.) 

Sec.  6.    Unincorporated  Association  Stocks. 
Same  as  Sees.  3,  4,  and  5. 

(Const.,  Art.  VIII,  Sec.  3.) 


BONDS. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 

Sec.  8.    North  Carolina  State  Bonds. 

Issues  of  state  bonds  are  usually  exempt,  by 

the  terms  of  the  statute  authorizing  them, 

from  all  state  and  local  taxes,  including 

income  tax.     (See  note  3  after  Sec.  17.) 

(See  P.  L.  1909,  Ch.  399.) 


EXEMPT  AND  TAXABLE  —  NORTH  CAROLINA      143 

Sec.  9.    North  Carolina  Municipal  Bonds. 

Taxable,  except  bonds  and  coupons  issued  by 
drainage  districts  under  P.  L.  1909,  Ch. 
442,  Sec.  34,  which  are  exempt  during 
1911-1925,  exclusive. 
(P.  L.,  1911,  Ch.  177.) 

Sec.  10.    State  and  Municipal  Bonds  of  Other  States 
and  Countries. 

Taxable. 

(P.  L.  1911,  Ch.  50,  Sec.  41.) 

Sec.  11.    Corporation  Bonds. 

Taxable. 

(P.  L.  1911,  Ch.  50,  Sec.  41.) 


NOTES. 

Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 
Taxable  whether  the  land  is  in  the  state  or 

elsewhere. 
(P.  L.  1911,  Ch.  50,  Sec.  41.) 

Sec.  13.    Commercial  Paper. 

Taxable. 

(P.  L.  1911,  Ch.  50,  Sec.  41.) 


144  INVESTMENT  SECURITIES 

BANK  DEPOSITS. 


Sees. 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  North  Carolina  Banks. 

16.  Deposits    in   North    Carolina   Savings 

Banks. 

17.  Deposits    in    Banks    Located    Outside 

North  Carolina. 
Taxable. 

(P.  L.  1911,  Ch.  50,  Sec.  41.) 

NOTE.  1.  Certificates  of  deposit  in  any  bank,  whether 
within  or  without  the  state,  are  expressly  taxable. 

(P.  L.  1911,  Ch.  50,  Sec.  41.) 

NOTE  2.  The  taxpayer  may  deduct  the  amount  of 
debts  he  owes  from  the  amount  of  credits  due  him 
including  mortgages,  -bonds,  notes,  deposits,  etc. 

(P.  L.  1911,  Ch.  50,  Sec.  41.) 

NOTE  3.  Under  the  constitution  of  North  Carolina 
no  income  tax  can  be  assessed  on  incomes  from  prop- 
erty otherwise  taxed.  There  is  such  a  tax  now  of 
1  per  cent.,  and  it  is  levied  on  income  derived  from 
securities  above  listed  as  exempt. 


NORTH  DAKOTA. 


STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable  to  the  holder,  but  deduction  is  al- 
lowed for  real  estate  owned  by  the  bank. 
The  bank  pays  the  tax  for  the  holder. 
(Pol.  C.,  Sees.  1508,  1510.) 

(b)  North  Dakota  banks. 

Same  as  national  banks. 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Pol.  C.,  Sees.  1483,  1496,  Subd.  22.) 

(d)  Building  and  loan  associations. 

Taxable  whether  foreign  or  domestic. 
(Const.,  Sec.  144;  Pol.  C.,  Sec.  1483.) 

C  2.    Public  Service  Corporation  Stocks. 

i  3.    Insurance  Corporation  Stocks. 
Sees  -s 

I  4.    Manufacturing  Corporation  Stocks. 

[  5.    Other  Business  Corporation  Stocks. 

(a)  North  Dakota  corporations. 

Exempt. 

(Const.,  Sees.  176  and  179;  Pol.  C.,  Sees.  1481,  1487, 
1495,  1496,  1502,  1503;  Acts  of  1907,  Ch.  216.) 

(b)  Corporations  other  than  North  Dakota  corporations. 

Taxable. 

(Pol.  C.,  Sees.  1483,  1496,  Subd.  23.) 
10  C1451 


146  INVESTMENT  SECUKITIES 

Sec.  6.    Unincorporated  Association  Stocks. 

Probably  exempt,  but  such  associations    are 
uncommon  in  North  Dakota. 


BONDS. 


Sees.- 


Sec.  7.    United  States  Bonds. 
Exempt.     (Seep.  11.) 

8.  North  Dakota  State  Bonds. 

9.  North  Dakota  Municipal  Bonds. 

10.  State  and  Municipal  Bonds  of  Other 

States  and  Countries. 

11.  Corporation  Bonds. 

Taxable. 

(Pol.  C.,  Sees.  1483,  1487,  1496,  Subd.  21.) 


NOTES. 

Sec.  13.    Notes  Secured  by  Real  Estate  Mortgages. 

Taxable  whether  the  land  is  in  North  Dakota 

or  elsewhere. 
(Pol.  C.,  Sees.  1480,  1483.) 

Sec.  13.    Commercial  Paper. 

Taxable. 

(Pol.  C.,  Sees.  1480,  1483,  1496,  Subd.  20.) 


Sees. 


EXEMPT  AND  TAXABLE  —  NORTH  DAKOTA     147 
BANK  DEPOSITS. 


'14.    Deposits  in  National  Banks. 

15.  Deposits  in  North  Dakota  Banks. 

16.  Deposits    in    North    Dakota    Savings 

Banks. 

17.  Deposits    in    Banks    Located    Outside 

North  Dakota. 
Taxable. 

(Pol.  C.,  Sees.  1480,  1483.) 


OHIO. 

STOCKS. 

Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable,  but  the  bank  may  pay  the  tax  and 

deduct  the  amount  from  the  dividends. 
(General  Code  1910,  Sees.  5324,  5328,  5408,  5672  and 
5673  as  amended  by  Laws  of  1911,  p.  91.) 

(b)  Ohio  banks. 

Same  as  national  banks. 

(See  citations  under  Sec.  1   (a).) 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Gen.  Code  1910,  Sec.  5328.) 

(d)  Building  and  loan  associations. 

Taxable,  except  those  on  which  loans  have 

been  made,  which  are  exempt. 
(Gen.  Code,  Sec.  9675.) 

r2.    Public  Service  Corporation  Stocks. 
Sees  '  ^'    *nsurance  Corporation  Stocks. 

I  4.    Manufacturing  Corporation  Stocks. 
I  5.    Other  Business  Corporation  Stocks, 
(a)  Ohio  corporations. 
Exempt. 

(Gen.  Code,  Sec.  192.) 
[148] 


EXEMPT  AND  TAXABLE  —  OHIO  149 

(b)  Corporations  other  than  Ohio  corporations. 

If  two-thirds  of  the  property  of  the  corpora- 
tion is  taxed  in  Ohio  and  the  rest  some- 
where else,  the  shares  are  exempt. 
(Hubbard  v.  Brush,  61  Ohio  St.  252;  Gen.  Code  1910, 
Sec.  192.) 

Otherwise  taxable. 

(Gen.  Code  1910,  Sees.  5324,  5328.) 

Sec.  6.    Unincorporated  Association  Stocks. 
Shares    in    unincorporated    associations    are 
treated  in  the  same  manner  as  shares  of 
stock  in  corporations. 

(Gen.   Code  1910,   Sees.  5324,  5328,  5372;   State  v. 
Adams  Express  Co.,  2  N.  P.  98,  101.) 


BONDS. 


Sec.  7.    United  States  Bonds. 

Exempt.     (See  p.  11.) 

Sec.  8.    Ohio  State  Bonds. 

Exempt. 

(Const.,  Art.  XII,  Sec.  2.) 

Sec.  9.    Ohio  Municipal  Bonds. 

Exempt. 

(Const.,  Art.  XII,  Sec.  2.) 

Sec.  10.    State  and  Municipal  Bonds  of  Other  States 

and  Countries. 
Taxable. 

(Gen.  Code  1910,  Sees.  5323,  5328.) 


150  INVESTMENT  SECUKITIES 

Sec.  11.    Corporation  Bonds. 

Taxable,  as  credits  or  moneys. 
(Gen.  Code  1910,  Sees.  5327,  5328.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 
Taxable  whether  the  real  estate  is  in  Ohio  or 

elsewhere. 
(Gen.  Code  1910,  Sees.  5325,  5328.) 

Sec.  13.    Commercial  Paper. 

Taxable,  as  credits  or  moneys. 
(Gen.  Code  1910,  Sees.  5327,  5328.) 


BANE  DEPOSITS. 


Sees. 


f  14.    Deposits  in  National  Banks. 

15.  Deposits  in  Ohio  Banks. 

16.  Deposits  in  Ohio  Savings  Banks. 

17.  Deposits    in    Banks    Located    Outside 

Ohio. 
Taxable. 

(Gen.  Code  1910,  Sees.  5327,  5328.) 

NOTE  1.  Set-off  of  debts  is  allowed  against  notes 
and    accounts   receivable,   but    not    against   stock   or 
bonds  or  money  on  deposit  in  banks  subject  to  with- 
drawal on  demand. 
(Gen.  Code  1910,  Sec.  5327.) 

NOTE  2.  In  September,  1912,  Ohio  adopted  a  consti- 
tutional amendment  which  requires  that  laws  be  passed 
taxing  at  uniform  rates  all  stock  and  bonds  except 
Ohio  state  and  municipal  bonds  previously  issued  which 
must  remain  exempt.  This  will  materially  change  the 
foregoing  summary  when  the  legislation  is  enacted. 


OKLAHOMA. 


STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable  to  the  bank,  but  deductions  are  al- 
lowed for  real  estate  owned  by  the  bank. 
(Comp.  Laws,  Sees.  7545,  7558,  7580.) 

There  may  be  doubt  as  to  the  constitutionality 
of  this  form  of  tax. 

(b)  Oklahoma  banks. 

Same  as  national  banks. 

(Comp.  Laws,  Sees.  7545,  7580,  7583.) 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Comp.  Laws,  Sees.  7541,  7545,  7551,  7562.) 

(d)  Building  and  loan  associations. 

Exempt. 

(Comp.  Laws,  Sees.  1511,  7542.) 

NOTE. —  These  sections  confine  the  exemptions  to 
domestic  companies  doing  all  their  business  in  the 
state;  but  this  practically  includes  all  shares  of  this 
sort. 

Public  Service  Corporation  Stocks. 
g        13.    Insurance  Corporation  Stocks. 

'  A     Manufacturing  Corporation  Stocks. 
Other  Business  Corporation  Stocks. 

[151] 


152  INVESTMENT 


(a)  Oklahoma  corporations. 

Exempt. 

(Comp.  Laws,  Sees.  7551,  7558.) 

(b)  Corporations  other  than  Oklahoma  corporations. 

Exempt  if  the  corporation  does  business  in 
the  state  and  therefore  pays  a  tax  on  its 
capital;  otherwise  taxable. 
(Comp.  Laws,  Sees.  7541,  7545,  7546,  7551,  7558,  7562.) 

Sec.  6.  Unincorporated  Association  Stocks. 
Probably  would  be  treated  like  stock  in  cor- 
porations, but  such  shares  are  unknown 
in  Oklahoma.  If  treated  as  partnership 
their  property  will  be  taxed  to  the  firm 
and  not  to  individual  partners. 


BONDS. 


Sec.  7.    United  States  Bonds. 
Exempt.    (See  p.  11.) 

Sec.  8.    Oklahoma  State  Bonds. 
Generally  exempt  by  special  act;  otherwise 

taxable. 
(Comp.  Laws,  Sees.  7545,  7551,  7562.) 

9.    Oklahoma  Municipal  Bonds. 
I  10.    State  and  Municipal  Bonds  of  Other 

States  and  Countries. 
11.    Corporation  Bonds. 

Taxable. 

(Comp.  Laws,  Sees.  7545,  7551,  7562.) 


EXEMPT  AND  TAXABLE  —  OKLAHOMA          153 
NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 

Taxable  whether  the  land  is  located  in  Okla- 
homa or  elsewhere. 
(Comp.  Laws,  Sees.  7541,  7545,  7551,  7562.) 

But  mortgages  held  by  domestic  building  and 
loan  associations,  given  by  residents  of 
the  state  upon  domestic  real  estate,  are 
expressly  exempt. 
(Comp.  Laws,  Sees.  1512,  7542.) 

Sec.  13.    Commercial  Paper. 

Taxable. 

(Comp.  Laws,  Sees.  7541,  7545,  7551,  7562.) 


BANK  DEPOSITS. 


Sees. . 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  Oklahoma  Banks. 

16.  Deposits  in  Oklahoma  Savings  Banks. 

17.  Deposits    in    Banks    Located    Outside 

Oklahoma. 

Taxable. 

(Comp.  Laws,  Sees.  7541,  7545,  7546.) 

NOTE. —  There  is  a  general  income  tax  in  Oklahoma 
<*i~  income  from  all  sources. 
(Comp.  Laws,  Sees.  7743-7751  inc.) 


OREGON. 


STOCKS. 

Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable,  but  a  deduction  is  allowed  for  invest- 
ment in  real  estate  by  the  bank. 
(L.  0.  L.,  Sees.  3568,  3569,  3571.) 

(b)  Oregon  banks. 

Same  as  national  banks. 

(L.  0.  L.,  Sees.  3568,  3569,  3571,  4563,  4564.) 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(L.  0.  L.,  Sees.  3553,  3572.) 

(d)  Building  and  loan  associations. 

Taxable. 

(L.  0.  L.,  Sec.  3568.) 

Sec.  2.    Public  Service  Corporation  Stocks. 

(a)  Oregon  corporations. 

Taxable. 

(Gen.  Laws  of  1907,  Ch.  268,  Sec.  1.) 

(b)  Corporations  other  than  Oregon  corporations. 

Same  as  Sec.  2 (a). 

[154] 


EXEMPT  AND  TAXABLE  —  OREGON  155 

Sec.  3.    Insurance  Corporation  Stocks. 

(a)  Oregon  corporations. 

Taxable. 

(Gen.  Laws  of  1907,  Ch.  268,  Sec.  1.) 

(b)  Corporations  other  than  Oregon  corporations. 

Exempt. 

(L.  0.  L.,  Sees.  4634,  4650,  4673.) 

Sec.  4.    Manufacturing  Corporation  Stocks. 

(a)  Oregon  corporations. 

Taxable. 

(Gen.  Laws  of  1907,  Ch.  268,  Sec.  1;  L.  0.  L.,  Sec. 
3551.) 

(b)  Corporations  other  than  Oregon  corporations. 

Same  as  Sec.  4 (a). 

Sec.  5.    Other  Business  Corporation  Stocks. 

(a)  Oregon  corporations. 

Same  as  Sec.  4. 

(b)  Corporations  other  than  Oregon  corporations. 

Same  as  Sec.  4. 

Sec.  6.    Unincorporated  Association  Stocks. 

Same  as  Sec.  4. 
(L.  0.  L.,  Sec.  3551.) 


BONDS. 


Sec.  7.    United  States  Bonds. 

Exempt.     (See  p.  11.) 


156  INVESTMENT  SECURITIES 


Sees.  •< 


r   8.    Oregon  State  Bonds. 
9.    Oregon  Municipal  Bonds. 
10.    State  and  Municipal  Bonds  of  Other 

States  and  Countries. 
L 11.    Corporation  Bonds. 

Taxable. 

(L.  0.  L.,  Sec.  3553.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 

Taxable  whether  the  real  estate  is  in  Oregon 

or  elsewhere. 
(L.  0.  L.,  Sees.  3553,  6034;  8  Ore.  337;  11  Ore.  482.) 

Sec.  13.    Commercial  Paper. 

Taxable. 

(L.  0.  L.,  Sec.  3553.) 


DEPOSITS. 


Sees. . 


"  14.    Deposits  in  National  Banks. 

15.  Deposits  in  Oregon  Banks. 

16.  Deposits  in  Oregon  Savings  Banks. 

17.  Deposits    in    Banks    Located    Outside 

Oregon. 
Taxable. 

(L.  0.  L.,  Sec.  3553.) 


PENNSYLVANIA. 
STOCKS. 


Sec.  1.    Bank  Stocks. 
(a)  National  banks. 

Taxable  to  the  holder  on  their  market  value  at 
the  rate  of  four  mills  but  the  bank  pays 
the  tax  for  the  holder. 

(Purdon,    Sees.   45-55,   inclusive,   198;    Supp.   1912, 
Sees.  1,  2,  and  4.) 

In  assessing  the  shares,  deduction  must  be  al- 
lowed for  all  kinds  of  property  owned  by 
the  bank  which  would  be  exempt  in  the 
hands  of  the  individuals,  and  all  other  de- 
ductions allowed  to  individuals.  The 
bank  may,  at  its  option,  collect  from  its 
shareholders  and  pay  to  the  state  a  tax  of 
ten  mills  on  the  par  value  of  all  its  shares, 
which  shall  be  in  lieu  of  all  other  taxes 
except  those  on  real  estate. 
(Purdon,  Sees.  46,  54,  55;  94  Pa.  221;  168  Pa.  309; 
222  Pa.  293;  11  Dauphin  County,  22.) 

The  tax  on  capital  stock,  whether  collected  on 
the  first  basis  or  otherwise,  is  in  lieu  of 
taxes  on  all  personal  property  owned  by 
the  corporation,  and  this  includes  bonds 
and  mortgages  held  by  the  bank  in  its  own 
name.  But  bonds  and  mortgages  held  by 

[157] 


158  INVESTMENT  SECUKITIES 

banks  or  trust  companies  in  trust  for  in- 
dividuals are  taxable. 
(Purdon,  Supp.  1912,  Sec.  7.) 

(b)  Pennsylvania  banks. 

Same  as  national  banks. 

(See  citations  under  Sec.  l(a).) 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(See  citations  under  Sec.  l(a).) 

(d)  Building  and  loan  associations. 

Taxable  at  the  rate  of  four  mills  if  sufficiently 
matured  so  that  the  holder  is  in  the  posi- 
tion of  a  recipient  therefrom,  but  in  such 
case  the  company  pays  the  tax  for  the 
holder.  In  all  other  cases  the  shares  are 
exempt.  Though  the  act  of  May  22, 1883, 
P.  L.  38,  exempting  all  shares  of  mutual 
building  and  loan  associations,  has  never 
been  expressly  repealed,  it  is  believed  to 
be  no  longer  in  force. 

(Purdon,  Sees.  43,  261,  262;  Supp.  1912,  Sees.  3,  25. 
See,  however,  112  Pa.  337.) 

Sec.  2.    Public  Service  Corporation  Stocks. 

(a)  Pennsylvania  corporations. 

Shares  are  exempt  in  the  hands  of  the  holder, 
but  the  corporation  pays  a  tax  at  a  uni- 
form state  rate  of  five  mills  on  each  $100 
of  value  of  its  stock  and  deducts  it  from 


EXEMPT  AND  TAXABLE  —  PENNSYLVANIA         159 

its  dividends,  and  if  these  are  not  suffi- 
cient may  assess  the  shareholders  for  the 
balance. 

(Purdon,  Sees.  28,  29,  30,  31,  36-39,  inclusive,  252; 
Supp.  1912,  Sees.  6  and  7.) 

In  assessing  the  capital  stock,  only  such  pro- 
portion is  assessed  as  represents  the  en- 
tire property  of  the  corporation  located 
within  the  state,  including  real  estate, 
which  is  not  otherwise  taxed,   (222  Pa. 
319),  and  from  this  is  deducted  the  value 
of  U.  S.  bonds  and  other  tax-exempt  prop- 
erty held  by  the  corporation. 
(3  Dauphin  Co.  130;  198  U.  S.  341.) 
(b)  Corporations  other  than  Pennsylvania  corporations. 

If  doing  business  in  the  state,  taxable  like 
Pennsylvania     corporations ;     otherwise 
taxable  to  the  holder  at  the  rate  of  four 
mills  on  the  dollar  of  value. 
(Purdon,  Supp.  1912,  Sees.  1  and  2;  49  Pa.  519.) 

Sec.  3.    Insurance  Corporation  Stocks. 

(a)  Pennsylvania  corporations. 

Same  as  Sec.  2 (a). 

(Purdon,  Sees.  28,  29,  30,  31,  58;  Supp.  1909,  Sees. 

25-31,  inclusive;  Supp.  1912,  Sees.  1  and  2.) 
But  for  fire  or  marine  insurance  companies  the 

rate  is  three  mills  on  a  dollar  of  value  on 

capital  stock. 

(b)  Corporations  other  than  Pennsylvania  corporations. 

Taxable  at  the  rate  of  four  mills  on  the  dollar 

of  valuation. 
(Purdon,  Supp.  1912,  Sees.  1  and  2;  49  Pa.  519.) 


160  INVESTMENT  SECUKITIES 

Sec.  4.    Manufacturing  Corporation  Stocks. 

(a)  Pennsylvania  corporations. 

Exempt  to  the  extent  of  its  capital  actually 
and  exclusively  employed  in  manufactur- 
ing in  the  state,  except  brewing  and  dis- 
tilling corporations,  which  pay  a  ten-mill 
tax;  otherwise  subject  to  the  same  tax  as 
in  Sec.  2(a). 
(Purdon;  Supp.  1912,  Sec.  8.) 

(b)  Corporations  other  than  Pennsylvania  corporations. 

Same  as  Sec.  2(b).     The  special  exemption 

stated  in  Sec.  4(a)  also  applies. 
(Purdon,  Supp.  1912,  Sees.  1  and  2;  49  Pa.  519.) 

Sec.  5.    Other  Business  Corporation  Stocks. 

(a)  Pennsylvania  corporations. 

Same  as  Sec.  2 (a). 

(b)  Corporations  other  than  Pennsylvania  corporations. 

Same  as  Sec.  2(b). 

Sec.  6.    Unincorporated  Association  Stocks. 
Same  as  corporation  stocks. 

(Const.,  Art.  16,  Sec.  13;  Purdon,  Sec.  30.) 


BONDS. 

Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 

Sec.  8.    Pennsylvania  State  Bonds. 
Exempt. 

(Purdon,  Supp.  1912,  Sec.  2.) 


EXEMPT  AND  TAXABLE  —  PENNSYLVANIA       161 

Sec.  9.    Pennsylvania  Municipal  Bonds. 

Taxable  at  the  rate  of  four  mills  on  the  dollar 
of  value,  but  the  tax  is  deducted  from  the 
interest  and  paid  to  the  state  treasurer 
by  the  treasurer  of  the  municipality. 
(Purdon,  Sec.  245;  Supp.  1912,  Sees.  2,  12;  123  Pa. 
626;  129  Pa.  463.) 

Sec.  10.    State  and  Municipal  Bonds  of  Other  States 
and  Countries. 

Taxable  at  the  rate  of  four  mills  on  the  dol- 
lar of  value. 
(Purdon,  Supp.  1912,  Sec.  2.) 

£>ec.  11.    Corporation  Bonds. 

Taxable  at  the  rate  of  four  mills  on  the  dollar 
of  value.    The  tax  is  deducted  from  the 
interest  by  the  corporation  and  paid  by 
it  to  the  state. 
(Purdon,  Supp.  1912,  Sec.  2.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 
Taxable  to  the  mortgagee  at  the  rate  of  four 
mills  on  the  dollar  of  value,  whether  the 
real  estate  is  in  Pennsylvania  or  else- 
where. 

(Purdon,  Supp.  1912,  Sec.  2.) 
11 


162  INVESTMENT  SECUEITIES 

Sec.  13.    Commercial  Paper. 

Taxable  at  the  rate  of  four  mills  on  the  dollar 

of  value. 
(Purdon,  Supp.  1912,  Sec.  2.) 

But  notes  discounted  or  negotiated  by  banks 
or  trust  companies  are  not  taxable. 

(Purdon,  Supp.  1912,  Sec.  2.) 


BANK  DEPOSITS. 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  Pennsylvania  Banks. 

16.  Deposits     in     Pennsylvania     Savings 

Banks. 

17.  Deposits    in    Banks    Located    Outside 

Pennsylvania. 

Interest-bearing  deposits  are  taxable,  but  de- 
posits subject  to  check  are  exempt. 
(Purdon,  Supp.  1912,  Sees.  1-4.) 


RHODE   ISLAND. 


STOCKS. 

Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable  at  forty  cents  per  $100  of  assessed 
valuation.  The  tax  is  assessed  to  the 
owner  but  paid  by  the  bank.  Name  and 
address  of  owner  is  not  a  matter  of  pub- 
lic record. 
(P.  L.  1912,  Ch.  769,  Sec.  21.) 

(b)  Rhode  Island  banks. 

Except  shares  in  savings  banks,  taxable  at 
forty  cents  per  $100  of  assessed  valuation. 
The  tax  is  assessed  to  the  owner  but  paid 
by  the  bank. 
(P.  L.  1912,  Ch.  769,  Sec.  21.) 

(c)  Banks  of  other  states  and  countries. 

Taxable  at  forty  cents  per  $100  of  assessed 

valuation. 
(P.  L.  1912,  Ch.  769,  Sec.  41.) 

(d)  Building  and  loan  associations. 

Taxable  at  forty  cents  per  $100  if  a  Rhode 
Island  association.  Shares  in  foreign  as- 
sociations doing  business  in  Rhode  Island 
are  exempt. 

(P.  L.  1908,  Ch.  228,  Sec.  6.) 
[163] 


164  INVESTMENT  SECURITIES 

Sec.  2.    Public  Service  Corporation  Stocks. 

{(a)  Rhode  Island  corporations, 
(b)  Corporations  other  than  Rhode  Island  corporations. 
Exempt  if  carrying  on  business  for  profit  in 

Rhode  Island. 

(P.  L.  1912,  Ch.  769,  Sees.  9,  20,  25,  30;  Ch.  57,  Sec. 
9  of  the  General  Laws  of  1909,  as  amended  by 
Acts  1912,  Ch.  769,  Sec.  39.) 

Otherwise  taxable  at  forty  cents  per  $100  of 

assessed  valuation. 
(P.  L.  1912,  Ch.  769,  Sees.  40,  41.) 

Sec.  3.    Insurance  Corporation  Stocks. 

(a)  Rhode  Island  corporations. 

Taxable  at  forty  cents  per  $100  of  valuation. 
(P.  L.  1912,  Ch.  769,  Sees.  40,  41.) 

(b)  Corporations  other  than  Rhode  Island  corporations. 

Same  as  3 (a). 

Sec.  4.    Manufacturing  Corporation  Stocks. 

(a)  Rhode  Island  corporations. 

Same  as  Sec.  2. 

(b)  Corporations  other  than  Rhode  Island  corporations. 

Same  as  Sec.  2. 

Sec.  5.    Other  Business  Corporation  Stocks. 

(a)  Rhode  Island  corporations. 

Same  as  Sec.  2. 
'(b)  Corporations  other  than  Rhode  Island  corporations. 

Same  as  Seo.  2. 


EXEMPT  AND  TAXABLE  —  RHODE  ISLAND      165 

Sec.  6.    Unincorporated  Association  Stocks. 

Taxable  at  forty  cents  per  $100  of  valuation. 


BONDS. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 

Sec.  8.    Rhode  Island  State  Bonds. 
Exempt  by  the  terms  of  the  statutes  under 
which  they  are  issued. 

Sec.  9.    Rhode  Island  Municipal  Bonds. 

Taxable  at  the  rate  of  forty  cents  per  $100  of 

assessed  valuation. 
(P.  L.  1912,  Ch.  769,  Sec.  41.) 

Sec.  10.    State  and  Municipal  Bonds  of  Other  States 

and  Countries. 
Taxable  at  tEe  rate  Sf*  forty  cents  per  $100  of 

assessed  valuafliolfi.1 
(P.  L.  1912,  Ch.  769,  Sec.  41.) 

Sec.  11.    Corporation  Bonds. 

Bonds  of  domestic  or  foreign   corporations 
carrying  on  business  for  profit  in  Rhode 
Island  are  exempt. 
(P.  L.  1912,  Ch.  769,  Sees.  20  and  30.) 

Other  bonds  taxable  at  the  rate  of  forty  cents 

per  $100  of  assessed  valuation. 
(P.  L.  1912,  Ch.  769,  Sec.  41.) 


166  INVESTMENT  SECURITIES 

NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 
Taxable  at  the  rate  of  forty  cents  per  $100  of 
assessed  valuation,  whether  the  real  es- 
tate is  in  Rhode  Island  or  elsewhere'. 
(P.  L.  1912,  Ch.  769,  Sec.  41.) 

Sec.  13.    Commercial  Paper. 
Taxable  at  the  rate  of  forty  cents  per  $100  of 

assessed  valuation. 
(P.  L.  1912,  Ch.  769,  Sec.  41.) 


BANK  DEPOSITS. 


Sec.  14.    Deposits  in  National  Banks. 
Taxable  at  the  rate  of  forty  cents  per  $100  of 

assessed  valuation,  except  participation 

and  savings  accounts. 
(P.  L.  1912,  Ch.  769,  Sec.  41.) 

Sec.  15.    Deposits  in  Rhode  Island  Banks. 
Savings  deposits  and  participation  accounts 
are  taxable  to  the  bank  at  the  rate  of 
forty  cents  per  $100  and  exempt  to  the 
holder;  other  deposits  are  taxable  to  the 
holder  at  the  same  rate. 
(P.  L.  1912,  Ch.  769,  Sec.  41;  G.  L.,  Ch.  39,  Sec.  3.) 


EXEMPT  AND  TAXABLE  —  RHODE  ISLAND       167 

Sec.  16.    Deposits  in  Rhode  Island  Savings  Banks. 

Exempt  to  the  holder.    Taxable  to  the  bank 

at  the  rate  of  forty  cents  per  $100. 
(P.  L.  1912,  Ch.  769,  Sec.  41;  G.  L.,  Ch.  39,  Sec.  4.) 

Sec.  17.    Deposits  in  Banks  Located  Outside  Rhode 

Island. 

Taxable  at  forty  cents  per  $100. 
(P.  L.  1912,  Ch.  769,  Sec.  41.) 

NOTE. —  Set-off  of  debts  is  allowed  against  money 
at  interest  or  on  deposit,  and  against  debts  due  from 
others.  , 

(P.  L.  1912,  Ch.  769,  Sec.  39  (10th).) 


SOUTH  CAROLINA. 
STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable  to  holder,  but  it  is  lawful  for  the  bank 

to  pay  the  tax. 
(Civ.  Code  1902,  Sees.  313,  317,  319,  and  323.) 

(b)  South  Carolina  banks. 

Taxable  in  the  same  manner  as  shares  of  stock 

in  national  banks. 
(See  citations  above.) 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Civ.  Code  1902  Sees.  260,  265,  268,  and  271.) 

NOTE. —  But   if  bank  is   located  in   this   state  its 
shares  of  stock  are  taxable  in  the  same  manner  as 
those  of  domestic  or  national  banks. 
(See  citations  under  Sec.  1  (a).) 

(d)  Building  and  loan  associations. 

There  is  no  statute  taxing  the  shareholder 
and  in  practice  he  is  exempt. 

Sec.  2.    Public  Service  Corporation  Stocks, 
(a)  South  Carolina  corporations. 
Exempt. 

(Civ.  Code  1902,  Sees.  266,  276-9,  288-291.) 
[168] 


EXEMPT  AND  TAXABLE  —  SOUTH  CAROLINA     169 

(b)  Corporations  other  than  South  Carolina  corporations. 
Taxable  (except  in  the  case  of  telephone  and 
telegraph,  express  and  sleeping  car  com- 
panies, and  railroads  doing  business  in 
the  state,  the  shares  of  stock  of  which  are 
exempt;  see  citations  under  Sec.  2 (a)). 
(Civ.  Code  1902,  Sees.  260,  265,  271.) 

f  3.    Insurance  Corporation  Stocks. 
Sees,  -j  4.    Manufacturing  Corporation  Stocks. 
[  5.    Other  Business  Corporation  Stocks. 

(a)  South  Carolina  corporations. 

Exempt.     (See  note  below.) 

(b)  Corporations  other  than  South  Carolina  corporations. 

Taxable.     (See  note  below.) 

NOTE. —  If  incorporated  under  the  laws  of  South 
Carolina  the  stock  is  exempt.  (Civ.  Code  1902,  Sees. 
266,  303,  304,  306.)  If  incorporated  under  the  laws 
of  any  other  state  or  country  and  located  outside  of 
South  Carolina,  the  stock  is  taxable.  (Civ.  Code  1902, 
Sees.  260,  265,  271.)  If  incorporated  under  the  laws 
of  any  other  state  or  country  and  located  in  South 
Carolina,  the  shares  are  exempt,  for  such  corporation 
is  taxed  on  all  its  property.  (Civ..  Code  1902,  Sees. 
304  and  306.)  If  incorporated  under  the  laws  of  South 
Carolina  but  owns  no  property  in  South  Carolina,  the 
shares  of  stock  are  taxable  for  such  a  corporation  is 
not  required  to  return  its  capital  for  taxation  in  this 
state.  (Civ.  Code  1902,  Sees.  260  and  305.) 


170  INVESTMENT  SECURITIES 

Sec.  6.    Unincorporated  Association  Stocks. 

Shares  of  stock  in  unincorporated  associa- 
tions are  treated  in  the  same  manner  as 
shares    of    stock    in    incorporated    com- 
panies as  far  as  taxation  is  concerned. 
(Civ.  Code  1902,  Sees.  260,  265,  266,  304,  306,  313.) 


BONDS. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 

Sec.  8.    South  Carolina  State  Bonds. 
Exempt. 

(Civ.  Code  1902,  Sec.  266.) 

Sec.  9.    South  Carolina  Municipal  Bonds. 

Exempt  if  issued  since  Feb.  20,  1912  (Acts 
1912,  No.  385),  otherwise  taxable  unless 
made  specially  exempt  by  the  statute  au- 
thorizing them. 
(Civ.  Code.  1902,  Sees.  260,  265,  266.) 

Sec.  10.    State  and  Municipal  Bonds  of  Other  States 
and  Countries. 

Taxable. 

(Civ.  Code  1902,  Sees.  260  and  265.) 

Sec.  11.    Corporation  Bonds. 

Taxable. 

(Civ.  Code  1902,  Sees.  260  and  265.) 


EXEMPT  AND  TAXABLE  —  SOUTH  CAROLINA    171 
NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 

Taxable  whether  the  real  estate  is  in  South 

Carolina  or  elsewhere. 
(Civ.  Code  1902,  Sees.  260  and  265.) 

Sec.  13.    Commercial  Paper. 

Taxable. 

(Civ.  Code  1902,  Sees.  260  and  265.) 


BANK  DEPOSITS. 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  South  Carolina  Banks. 

,  16.    Deposits    in    South    Carolina    Savings 

Banks. 

17.    Deposits    in    Banks    Located    Outside 
South  Carolina. 

Taxable. 

(Civ.  Code  1902,  Sees.  260  and  265.) 

NOTE  1.  A  person  may  deduct  from  his  "credits" 
the  amount  of  all  legal  debts,  claims,  and  demands 
against   him  whether  such   demands   are   payable  in 
money,  labor,  or  other  valuable  things. 
(Civ.  Code  1902,  Sec.  265.) 

NOTE  2.  In  estimating  an  income  (to  determine  the 
income  tax)  there  shall  not  be  included  interest  upon 
such  bonds  or  securities  of  this  state  or  of  the 
United  States,  the  principal  and  interest  of  which 
are,  by  the  law  of  their  issue,  exempt  from  taxation. 
(Civ.  Code  1902,  Sec.  325.) 


SOUTH  DAKOTA. 


STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable  to  the  holder.  Pol.  C.,  Sec.  2081.  In 
case  the  holder  is  a  nonresident,  the 
bank  pays  the  tax  for  the  holder.  Sec. 
2171.  In  all  other  cases  the  bank  retains 
sufficient  of  the  dividends  to  insure  pay- 
ment, and  is  liable  in  case  this  security 
is  released  before  payment  of  the  tax  by 
the  shareholder.  Sec.  2083.  Deduction 
is  allowed  for  real  estate  held  by  the 
bank.  Sec.  2081,  supra. 

(b)  South  Dakota  banks. 

Same  as  national  banks. 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Pol.  C.,  Sec.  2055.) 

(d)  Building  and  loan  associations. 

Taxable  whether  domestic  or  foreign. 

(Const.,  Art.  11,  Sees.  2  and  7;  Art.  17,  Sec.  19;  Pol. 
C.,  Sec.  2058.) 

[172] 


EXEMPT  AND  TAXABLE  —  SOUTH  DAKOTA      173 

Sec.  2.    Public  Service  Corporation  Stocks. 

(a)  South  Dakota  corporations. 

Exempt  if  the  corporation  is  located  in  the 
state. 

(Pol.   C.,   Sees.  2058,  2060,  2061,  2062,  2113,  2126, 
2131.) 

Otherwise  taxable. 
(Sees.  2055,  2058.) 

(b)  Corporations  other  than  South  Dakota  corporations. 

Same  as  South  Dakota  corporations. 

Sec.  3.    Insurance  Corporation  Stocks. 

(a)  South  Dakota  corporations. 

The  shares  are  exempt  as  such,  the  corpora- 
tion being  taxed  directly  on  its  capital. 
(Pol.  C.,  Sees.  2055,  2058,  2076.) 

(b)  Corporations  other  than  South  Dakota  corporations. 

Taxable. 

(Pol.  C.,  Sees.  2055,  2058.) 

Sec.  4.    Manufacturing  Corporation  Stocks. 

(a)  South  Dakota  corporations. 

Exempt  if  the  corporation  is  located  in  the 

state.     (See  note  after  Sec.  6.) 
(Pol.  C.,  Sees.  2055,  2058,  2076,  2077.) 

Otherwise  taxable. 
(Sees.  2055,  2058.) 

(b)  Corporations  other  than  South  Dakota  corporations. 

Same  as  South  Dakota  corporations. 


174  INVESTMENT  SECURITIES 

Sec.  5.    Other  Business  Corporation  Stocks. 

(a)  South  Dakota  corporations. 

Exempt  if  the  property  of  the  corporation  is 
taxed  in  the  state.     (See  note  after  Sec. 
6.) 
(Pol.  C.,  Sec.  2058.) 

Otherwise  taxable. 

(Sees.  2055,  2058.     But  see  note  after  Sec.  6.) 
Shares  in  mercantile  corporations,  to  the  ex- 
tent to  which  their  property  is  located  in 
the  state,  are  exempt. 
(Sec.  2058,  supra;  Sees.  2076,  2078.) 

(b)  Corporations  other  than  South  Dakota  corporations. 

Same  as  South  Dakota  corporations. 

Sec.  6.    Unincorporated  Association  Stocks. 

Same  as  corporation  stocks. 

(Const.,  Art  11,  Sec.  2;  Art,  17,  Sec.  19;  Pol.  C.,  Sec. 
2058.) 

NOTE. —  Political  Code,  Sec.  2058,  provides  that 
shares  of  stock  shall  be  taxed  when  the  property  of 
the  corporation  is  not  taxed  in  the  state.  The  courts- 
have  not  decided  whether  or  not  the  shares  are  taxable 
in  case  only  a  part  of  the  corporate  property  is 
located  in  the  state.  The  practice  of  assessors  is  to> 
tax  such  shares. 


BONDS. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 


Sees. 


EXEMPT  AND  TAXABLE  —  SOUTH  DAKOTA      175 

r    8.    South  Dakota  State  Bonds. 
9.    South  Dakota  Municipal  Bonds. 

10.  State  and  Municipal  Bonds  of  Other 

States  and  Countries. 

11.  Corporation  Bonds. 

Taxable. 

(Pol.  C.,  Sec.  2076,  Subd.  22.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 

Taxable  whether  the  land  is  in  South  Dakota 

or  elsewhere. 
(Pol.  C.,  Sees.  2052,  2055.) 

They  are  treated  as  credits,  and  hence  are 
evidently  taxable  to  resident  holders 
wherever  the  land  is  situated.  (See  sec- 
tions above  cited.) 

Sec.  13.    Commercial  Paper. 
Taxable. 

(Same  citations.     See   also  5   S.   D.   84.) 

Deduction  of  debts  is  not  allowed  from  any 

species  of  taxable  property. 
(Pol.  C.,  Sec.  2085;  2  S.  D.  58;  4  S.  D.  6.) 


176 


Sees. 


INVESTMENT  SECURITIES 
BANK  DEPOSITS. 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  South  Dakota  Banks. 

16.  Deposits    in    South    Dakota    Savings 

Banks. 

17.  Deposits    in    Banks    Located    Outside 

South  Dakota. 

Taxable. 

(Pol.  C.,  Sees.  2052,  2055.) 


TENNESSEE. 


STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable,  but  the  bank  pays  the  tax  for  the 
stockholder.     Deduction  is  made  for  real 
estate  and  other  tangible  assets. 
(Acts  of  1907,  Ch.  602,  Sec.  24.) 

(b)  Tennessee  banks. 

Taxed  in  the  same  manner  as  shares  in  na- 
tional banks. 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Acts  of  1907,  Ch.  602,  Sees.  4  and  8.) 

Foreign  banks  doing  business  in  Tennessee 
are  treated  the  same  as  national  and 
domestic  banks. 

(d)  Building  and  loan  associations. 

Exempt. 

(Acts  of  1907,  Ch.  541,  Sec.  7;  cf.  Ch.  602,  Sec.  24.) 

Sec.  2.    Public  Service  Corporation  Stocks. 

(a)  Tennessee  corporations. 

Exempt. 

(Acts  of  1907,  Ch.  602,  Sees.  21,  24.) 

(b)  Corporations  other  than  Tennessee  corporations. 

Taxable  except  shares  in  corporations  doing 
business  in  Tennessee,  which  are  exempt. 
(Acts  of  1907,  Ch.  602,  Sec.  24.) 
12  [177] 


178  INVESTMENT  SECURITIES 

Sec.  3.    Insurance  Corporation  Stocks. 

(a)  Tennessee  corporations. 

Taxable  to  the  holders,  but  the  company  to 

pay  the  tax. 
(Acts  of  1907,  Ch.  602,  Sees.  21,  24.) 

(b)  Corporation  other  than  Tennessee  corporations. 

Taxable  except  in  the  case  of  foreign  insur- 
ance corporations  doing  business  in  Ten- 
nessee, the  shares  of  which  are  taxed  in 
the  same  manner  as  those  of  domestic  in- 
surance corporations. 
(Acts  of  1907,  Ch.  602,  Sec.  8.) 

Sec.  4.    Manufacturing  Corporation  Stocks. 

(a)  Tennessee  corporations. 

Exempt. 

(Acts  of  1907,  Ch.  602,  Sees.  8,  22.) 

(b)  Corporations  other  than  Tennessee  corporations. 

Taxable. 

(Acts  of  1907,  Ch.  602,  Sec.  8.) 

Except  the  shares  of  stock  in  corporations 
doing  business  in  Tennessee,  which  are 
exempt. 
(Acts  of  1907,  Ch.  602,  Sees.  8,  22,  23.) 

Sec.  5.    Other  Business  Corporation  Stocks. 

(a)  Tennessee  corporations. 

Taxable,  but  the  corporation  pays  the  tax  for 
the  stockholder. 

(Acts  of  1907,  Ch.  602,  Sees.  8,  24.) 


EXEMPT  AND  TAXABLE  —  TENNESSEE          179 

(b)  Corporations  other  than  Tennessee  corporations. 
Taxable. 

(Acts  of  1907,  Ch.  602,  Sec.  8.) 

If  the  corporation  does  business  in  Tennessee 
the  tax  is  paid  by  the  corporation  for  the 
shareholder. 
(Acts  of  1907,  Ch.  602,  Sec.  24.) 

Sec.  6.    Unincorporated  Association  Stocks. 

Uncertain. —  There  are  no  provisions  dealing 
expressly  with  shares  in  unincorporated 
associations,  but  partnership  property  is 
taxed  to  the  firm  and  not  to  the  individual 
partners. 


BONDS. 


Sees. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  *11.) 

8.  Tennessee  State  Bonds. 

9.  Tennessee  Municipal  Bonds. 

10.  State  and  Municipal  Bonds  of  Other 

States  and  Countries. 

11.  Corporation  Bonds. 

Taxable. 

(Acts  of  1907,  Ch.  602,  Sec.  8;  Bank  v.  Memphis, 
116  Tenn.  641.) 


180  INVESTMENT  SECURITIES 

NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 
Taxable  whether  the  real  estate  is  in  Ten- 
nessee or  outside. 
(Acts  of  1907,  Ch.  602,  Sec.  8,  Cl.  7.) 

Sec.  13.    Commercial  Paper. 

Taxable. 

(Acts  of  1907,  Ch.  602,  Sec.  8,  Cl.  7.) 


Sees. 


BANK  DEPOSITS. 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  Tennessee  Banks. 

16.  Deposits  in  Tennessee  Savings  Banks. 

17.  Deposits  in  Banks  Located  Outside  Ten- 

nessee. 

Taxable. 

(Acts  of  1907,  Ch.  602,  Sec.  8,  Cl.  7.) 

There  is  an  income  tax  on  the  income  from 
United    States    bonds    and    stocks    and 
bonds  not  taxed  ad  valorem. 
(Acts  of  1907,  Ch.  602,  Sec.  8.) 


TEXAS. 

STOCKS. 

Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable  in  the  hands  of  the  holder.  Banks 
required  to  list  and  shareholders  to  ren- 
der all  shares  owned  by  them,  Unren- 
dered  shares  are  assessed  against  the 
shareholders  by  the  assessor  as  other  un- 
rendered  property. 

(Texas  Revised  Civil  Statutes  1911,  Articles  7503, 
7505,  and  7522;  City  of  Marshall  v.  State  Bank, 
127  S.  W.  1083.) 

(b)  Texas  banks. 

Taxable  in  hands  of  holder. 

(Texas  Revised  Civil  Statutes  1911,  Articles  7503, 
7505,  and  7522;  City  of  Marshall  v.  State  Bank, 
127  S.  W.  1083.) 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Revised  Statutes  1911,  Articles  7503,  7505,  7518; 
City  of  Marshall  v.  State  Bank,  127  S.  W.  1083.) 

(d)  Building  and  loan  associations. 

Taxable. 

(Revised  Statutes  1911,  Articles  7503,  7505,  7506, 
7517.) 

[181] 


182  INVESTMENT  SECURITIES 

Sec.  2.    Public  Service  Corporation  Stocks. 

(a)  Texas  corporations. 

Exempt. 

(Revised  Statutes    1911,   Articles  7515,   7518,   7519, 
7524,  7526.) 

(b)  Corporations  other  than  Texas  corporations. 

Taxable. 

(Revised  Statutes  1911,  Articles  7503,  7505,  7518.) 

f  3.    Insurance  Corporation  Stocks. 
Sees.  *j  4.    Manufacturing  Corporation  Stocks. 
[  5.    Other  Business  Corporation  Stocks. 

(a)  Texas  corporations. 

Exempt.     (See  next  note.) 

(b)  Corporations  other  than  Texas  corporations. 

Taxable.     (See  next  note.) 

NOTE. —  No  distinction  is  made  between  these  last 
three  classes  of  corporations.  If  the  corporation  is 
incorporated  under  the  laws  of  Texas  its  stock  is 
exempt  in  the  hands  of  the  holder.  (Revised  Stat- 
utes 1911,  Articles  7505,  7518,  7519,  7526.)  If  the 
corporation  is  incorporated  under  the  laws  of  any 
other  state  or  country,  its  stock  is  taxable  to  the  holder. 
(Revised  Statutes  1911,  Articles  7503,  7505,  7518.) 

Sec.  6.    Unincorporated  Association  Stocks, 
(a)  Associations  or  companies  owning  property  in  Texas. 
Exempt. 

(Revised   Statutes   1911,   Articles   7503,   7504,   7505, 
7506,  7518,  7519.) 

NOTE. —  The  effect  of  the  above  articles  of  the  Stat- 
Htes  is  to  require  all  the  property  of  joint-stock  or 
unincorporated  associations  or  companies  owning 


EXEMPT  AND  TAXABLE  —  TEXAS  183 

property  in  Texas  to  be  listed  and  rendered  for  taxa- 
tion; to  require  the  stock  of  the  members  to  be  also 
listed  and  rendered  would  be  to  impose  double  taxa- 
tion. 

(Gillespie  v.  Gaston,  67  T.  599;  City  of  Marshall  v. 
State  Bank,  127  S.  W.  1083.  See,  specially,  defini- 
tion of  "Person,"  Art.  7506.) 

(b)  Associations  or  companies  not  owning  property  in  Texas. 
Taxable. 

(Revised  Statutes  1911,  Articles  7503,  7504,  7505, 
7506,  7509,  7518,  7519.) 

NOTE. —  Article  7509  requires  every  person  to  list 
or  render  for  taxation  "  stock  of  joint-stock  or  other 
companies  (when  the  property  of  such  company  is 
not  assessed  in  this  state)."  Since  such  companies 
not  owning  property  in  Texas  would  not  be  required 
to  render  their  property  in  this  state,  the  said  article 
7509  would  require  the  Texas  owners  of  stock  therein 
to  list  or  render  their  stock  for  taxation. 


Sees". 


BONDS. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 

8.  Texas  State  Bonds. 

9.  Texas  Municipal  Bonds. 

10.  State  and  Municipal  Bonds  of  Other 

States  and  Countries. 

11.  Corporation  Bonds. 

Taxable. 

(Revised  Statutes  1911,  Articles  7503,  7505,  7518. 
See  also  Campbell  v.  Wiggin,  85  T.  429,  21  S.  W 
599,  holding  that  exemption  from  taxation  cannot 


184  INVESTMENT  SECUEITIES 

be  presumed;  therefore  it  would  seem  to  follow, 
since  there  is  no  express  exemption  of  any  kind  of 
bonds,  that  they  are  taxable.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 

Taxable  whether  the  real  estate  is  in  Texas 
or  elsewhere. 

(Revised   Statutes   1911,   Articles   7503,   7505,   7506; 
Hall  v.  Miller,  102  T.  289,  115  S.  W.  1169.) 

Sec.  13.    Commercial  Paper. 

Taxable. 

(Revised   Statutes   1911,   Articles   7503,   7505,   7506, 
7518.) 


Sees. 


BANK  DEPOSITS. 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  Texas  Banks. 

16.  Deposits  in  Texas  Savings  Banks. 

17.  Deposits    in    Banks    Located    Outside 

Texas. 

Taxable,    under    general    head    of    personal 

property. 
(Revised    Statutes   1911,   Articles   7503.   7505,   7506, 

7518.) 

NOTE. —  The  following  provisions  are  made  as  to 
the  taxation  of  deposits  and  debts:  Personal  Prop- 
erty includes  all  the  moneys  at  interest  due  the 


EXEMPT  AND  TAXABLE  —  TEXAS  185 

person  to  be  taxed,  over  or  above  what  he  pays  in- 
terest for,  and  all  other  debts  due  such  person  over 
and  above  his  indebtedness,  but  article  7523  says 
that  he  shall  not  be  entitled  to  any  deduction  on  ac- 
count of  any  bond,  note,  or  obligation  of  any  kind 
given  to  any  mutual  insurance  company  nor  on  ac- 
count of  any  unpaid  subscription  to  any  religious, 
literary,  scientific,  or  charitable  institution  or  society 
nor  on  account  of  any  subscription  to  or  installment 
payable  on  the  capital  stock  of  any  company,  whether 
incorporated  or  unincorporated. 


UTAH. 


STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable  to  the  holder,  but  the  bank  pays  the 
tax  for  the  holder.    Deductions  are  al- 
lowed for  real  estate  owned  by  the  bank. 
(Comp.  Laws,  Sees.  2507,  2508,  2509,  25U.) 

(b)  Utah  banks. 

Same  as  national  banks. 

(Comp.  Laws,  Sees.  2507,  2508,  2509,  2511.) 

(c)  Banks  of  other  states  and  countries. 

Taxable,  both  when  the  bank  is  not  located 
in  the  state  and  when  the  bank  is  located 
in  the  state. 

(Const.,  Art.  13,  Sec.  2;  Comp.  Laws,  Sees.  2501, 
2505,  2507,  2508,  2509,  2511;  Session  Laws  1911, 
p.  35,  Sec.  22.) 

(d)  Building  and  loan  associations. 

Exempt  when  their  property  is  in  Utah,  other- 
wise taxable. 

(Const.,   Art.  13,   Sec.  2;   Comp.   Laws,   Sec.   2517; 
Session  Laws  1909,  p.  93.) 
[186] 


EXEMPT  AND  TAXABLE  —  UTAH  187 

Sec.  2.    Public  Service  Corporation  Stocks. 

(a)  Utah  corporations. 

Exempt. 

(Const.,  Art.  12,  Sec.  14;  Art.  13,  Sees.  2  and  10; 
Comp.  Laws,  Sees.  2513,  as  amended  by  Session 
Laws  1909,  p.  95,  252S,  2533-2536,  inclusive,  and 
2559.) 

(b)  Corporations  other  than  Utah  corporations. 

Taxable. 

(Const.,  Art.  13,  Sec.  2;  Comp.  Laws,  Sees.  2501, 
2505.) 

Sec.  3.  Insurance  Corporation  Stocks. 

(a)  Utah  corporations. 

Exempt. 

(Session  Laws  1909,  p.  297,  Sees.  17  and  18.) 

(b)  Corporations  other  than  Utah  corporations. 

Same  as  Sec  3 (a). 

Sec.  4.    Manufacturing  Corporation  Stocks. 

(a)  Utah  corporations. 

Exempt  if  the  corporation  is  located  in  the 

state. 

(Const.,  Art.  13,  Sec.  2;  Art.  13,  Sec.  10;  Comp. 
Laws,  Sec.  2528.) 

Otherwise  taxable. 

(Const.,  Art.  13,  Sec.  2;  Comp.  Laws,  Sees.  2501, 
2505,  2530,  2532.) 

(b)  Corporations    other   than   Utah   corporations. 

Same  as  Sec.  4 (a). 

Sec.  5.    Other  Business  Corporation  Stocks. 
(a)  Utah  corporations. 
Same  as  Sec.  4. 


188  INVESTMENT  SECURITIES 

(b)  Corporations  other  than  Utah  corporations. 
Same  as  Sec.  4. 

Sec.  6.    Unincorporated  Association  Stocks. 
Same  as  Sees.  4  and  5. 

(Const.,  Art.  12,  Sec.  4;  Comp.  Laws,  Sec.  2505,  part 
8.) 

NOTE. —  In  practice  no  stock  except  that  of  banks 
is  taxed  in  Utah. 


BONDS. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 

Sec.  8.    Utah  State  Bonds. 

Generally  taxable. 

(Const.,  Art.  13,   Sec.   2;   Comp.  Laws,   Sees.  2501, 

2505.) 
The  following,  however,  are  expressly  exempt : 

(a)  The  $200,000  state  bonds  to  secure  territorial  indebted- 

ness. 
(Session  Laws  of  1896,  Ch.  77.) 

(b)  The  $1,000,000  bond  issue  for  state  capitol. 

(Session  Laws  of  1911,  Ch.  8.) 

(c)  The  $260,000  bond  issue  for  state  roads. 

(Session  Laws  of  1911,  Ch.  45.) 

(d)  State  university  bonds. 

(Session  Laws  of  1911,  Ch.  14.) 


EXEMPT  AND  TAXABLE  —  UTAH  189 

Sec.  9.    Utah  Municipal  Bonds. 

Taxable,  but  in  practice  they  are  not  assessed. 
(Const.,  Art.   13,   Sec.  2;   Comp.   Laws,   Sees.   2501, 
2505.) 

Sec.  10.    State  and  Municipal  Bonds  of  Other  States 

and  Countries. 
Taxable. 

(Same  citations.) 

Sec.  11.    Corporation  Bonds. 
Taxable. 

(Same  citations,  and  also  Comp.  Laws,  Sec.  2517,  as 
amended  by  Session  Laws  1909,  p.  93.) 


NOTES. 

Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 
Exempt  whether  the  real  estate  is  in  Utah  or 
elsewhere. 

(Const.,  Art.  13,  Sec.  3.) 

Sec.  13.    Commercial  Paper. 

Taxable. 

(Const.,  Art.  13,  Sec.  2;  Comp.  Laws,  Sees.  2501, 
2505,  2517,  as  amended  by  Session  Laws  1909,  p. 
93.) 

But  deduction  of  debts  is  allowed. 

(Const.,  Art.  13,  Sec.  3;  Comp.  Laws,  Sees.  2517, 
2518.) 


190  INVESTMENT  SECURITIES 

BANK  DEPOSITS. 


Sees. 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  Utah  Banks. 

16.  Deposits  in  Utah  Savings  Banks. 

17.  Deposits    in    Banks    Located    Outside 

Utah. 

Taxable. 

(Const.,  Art.  13,  See.  2;  Comp.  Laws,  Sees.  2501, 
2505,  2517,  as  amended  by  Session  Laws  1909,  p. 
93.) 


VERMONT. 
STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable.     (But  see  note  1  after  Sec.  6.) 
(P.  S.  of  1906,  Sees.  515  and  517.) 

(b)  Vermont  banks. 

Taxable.     (But  see  note  1  after  Sec.  6.) 
(P.  S.  of  1906,  Sees.  515  and  517.) 

(c)  Banks  of  other  states  and  countries. 

Exempt  when  taxed  in  such  other  state  or 
foreign  country.  (But  see  note  5  after 
Sec.  6.) 

(P.  S.  of  1906,  Sec.  496,  III;  Foster  v.  Stevens,  63 
Vt.  175  (1890).) 

(d)  Building  and  loan  associations. 

No  special  statute. 

Sec.  2.    Public  Service  Corporation  Stocks. 

(a)  Vermont  corporations. 

Exempt.     (But  see  note  2  after  Sec.  6.) 

(P.  S.  of  1906,  Sees.  496,  V,  515,  and  797,  as  amended 
by  Acts  1908,  Ch.  30,  Sec.  4.) 

(b)  Corporations   other   than   Vermont   corporations. 

Exempt  when  taxed  in  such  other  state  or 
foreign  country.  (But  see  note  5  after 
Sec.  6.) 

(P.  S.  of  1906,  Sec.  496,  III.) 
[191] 


192  INVESTMENT  SECURITIES 

Sec.  3.    Insurance  Corporation  Stocks. 

(a)  Vermont  corporations. 

Exempt. 

(P.  S.  of  1906,  Sec.  797,  as  amended  by  Acts  1908, 
Ch.  30,  Sec.  4.) 

(b)  Corporations  other  than  Vermont  corporations. 

Exempt  when  taxed  in  such  other  state  or  for- 
eign   country.     (But    see    note    5    after 
Sec.  6.) 
(P.  S.  of  1906,  Sec.  496,  III.) 

Sec.  4.    Manufacturing  Corporation  Stocks. 

(a)  Vermont  corporations. 

Taxable.    (See  note  3  after  Sec.  6.) 
(P.  S.  of  1906,  Sec.  515.) 

(b)  Corporations  other  than  Vermont  corporations. 

Exempt  when  taxed  in  such  other  state  or 
foreign  country.     (But  see  note  5  after 
Sec.  6.) 
(P.  S.  of  1906,  Sec.  496,  III.) 

Sec.  5.    Other  Business  Corporation  Stocks. 

(a)  Vermont  corporations. 

Taxable.     (But  see  note  1  after  Sec.  6.) 

(P.  S.  of  1906,  Sec.  515.) 

(b)  Corporations  other  than  Vermont  corporations. 

Exempt  when  taxed  in  such  other  state  or 
foreign  country.     (But  see  note  5  after 
Sec.  6.) 
(P.  S.  of  1906,  Sec.  496,  III.) 


EXEMPT  AND  TAXABLE  —  VERMONT  193 

Sec.  6.    Unincorporated  Association  Stocks. 
Such  associations  are  held  to  be  partnerships 
(Patch  Mfg.  Co.  v.  Capeless,  79  Vt.  1) 
and  the  shares  are  exempt. 
(P.  S.  of  1906,  Sec.  510,  Subd.  2.) 

NOTE  1.  By  P.  S.  of  1906,  Sec.  520,  in  assessing 
stock  of  manufacturing,  mercantile,  or  trading  cor- 
porations the  value  of  their  realty  in  this  state  or 
elsewhere,  and  the  value  of  their  personal  estate  taxed 
in  Vermont  or  outside  the  state,  shall  be  deducted  from 
the  whole  value  of  the  stock;  in  the  case  of  other 
corporations,  the  whole  value  of  their  domestic  or 
foreign  realty  shall  be  deducted. 

NOTE  2.  By  the  term  "  Public  Service  Corporations  " 
are  included  railroad,  steamboat,  car,  transportation, 
telegraph,  or  telephone  companies. 

NOTE  3.  A  town  may  by  special  vote  exempt  prop- 
erty and  capital  of  manufacturing,  quarrying,  and 
mining  corporations,  the  exemption  not  to  last  more 
than  ten  years  from  the  date  of  the  commencement 
of  business.  (P.  S.  of  1906,  Sec.  499)  This  has 
been  held  to  exempt  the  shares  of  its  stockholders. 
(Richardson  v.  St.  Albans,  72  Vt.  1.) 

NOTE  4.  There  are  many  exemptions  in  Vermont  by 
special  vote  of  the  legislature. 

NOTE  5.  In  practice  shareholders  seldom  return  for 
taxation  shares  in  foreign  corporations.  They  appar- 
ently assume  that  the  stock  or  property  of  such  cor- 
porations is  taxed  in  the  foreign  jurisdiction. 

13 


194  INVESTMENT  SECURITIES 

BONDS. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 
But  interest  and  income  from  such  bonds  may 

be  taxed. 

(P.  S.  1906,  Sec.  496,  I.) 

Sec.  8.    Vermont  State  Bonds. 
Taxable. 

(P.  S.  of  1906,  Sees.  488  and  494.) 

Sec.  9.    Vermont  Municipal  Bonds. 

Taxable,  except  as  to  those  issued  after  Feb. 
1,  1907,  as  evidence  of  obligations  for 
money  loaned  to  a  county,  town,  village, 
incorporated  school  or  fire  district,  at  a 
rate  of  interest  not  exceeding  4  per  cent, 
for  the  purpose  of  constructing,  purchas- 
ing, or  repairing  water,  sewer,  or  lighting 
systems,  permanent  highways,  bridges, 
walks,  or  public  buildings,  or  for  the  pur- 
pose of  aiding  in  the  construction  of  a 
railroad  or  for  the  purpose  of  refunding 
a  debt  contracted  for  any  of  the  fore- 
going purposes. 

(P.  S.  of  1906,  Sec.  496,  (12),  as  amended  by  Acts 
1910,  Ch.  30.) 


EXEMPT  AXD  TAXABLE  —  VERMONT  195 

Sec.  10.    State  and  Municipal  Bonds  of  Other  States 
and  Countries. 

Taxable. 

(P.  S.  of  1906,  Sees.  488  and  494.) 

Sec.  11.    Corporation  Bonds. 
Taxable. 

(P.  S.  of  1906,  Sees.  488  and  494.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 
Taxable  whether  the  real  estate  is  in  Vermont 
or  elsewhere. 

(P.  S.  of  1906,  Sees.  488  and  494.) 

Sec.  13.    Commercial  Paper. 
Taxable. 

(P.  S.  of  1906,  Sees.  488  and  494.) 

NOTE. —  Money,  stocks,  bonds,  mortgages  and  other 
evidences  of  indebtedness  belonging  to  insurance,  surety 
or  guaranty  companies  are  exempt.  (Acts  1908,  Ch. 
30,  Sec.  4.) 


BANK   DEPOSITS. 


Sec.  14.    Deposits  in  National  Banks. 

Taxable  except  as  to  national  banks  wherein 

the  rate  of  interest  exceeds  2  per  cent., 

and  where  bank  files  stipulation  agreeing 

to  pay  tax.    In  practice  all  banks  do  this. 

(Acts  1910,  Ch.  35,  Sec.  6;  P.  S.  of  1906,    Ch.  37.) 


196  INVESTMENT  SECUKITIES 

Sec.  15.    Deposits  in  Vermont  Banks. 
Exempt. 

(Acts  1910,  Ch.  35,  Sec.  3.) 

Sec.  16.    Deposits  in  Vermont  Savings  Banks. 
Exempt. 

(Acts  1910,  Ch.  35,  Sec.  3.) 

Sec.  17.    Deposits  in  Banks  Located  Outside 

Vermont. 
Taxable. 

(Acts  1910,  Ch.  35,  Sec.  6.) 

NOTE  1.  The  taxpayer  may  deduct  from  the  value 
of  all  taxable  personalty  the  excess  of  his  debts  over 
all  tax  exempt  stocks,  bonds,  notes  and  deposits. 
(Acts  1910,  Ch.  35,  Sec.  7.) 

NOTE  2.  A  license  tax  is  imposed  on  persons  and 
corporations  selling  investment  securities  in  Vermont, 
of  1%  on  the  value  of  such  securities  sold  in  each  year 
and  is  in  lieu  of  all  other  taxes  for  that  year  on  such 
securities.  If  the  vendor  reports  the  names  of  vendees, 
the  tax  may  be  assessed  to  them.  If  the  vendees  list 
the  shares  themselves,  this  tax  is  abated.  (P.  S.  of 
1906,  Sees.  747-750.) 


VIRGINIA. 


STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable  to  holder  but  the  bank  pays  the  tax 

for  the  stockholder. 

(Code    1904,    Tax    Bill,    Sees.    17-22;    Sec.  17,    as 
amended  by  Acts  1912,  Ch.  15.) 

(b)  Virginia  banks. 

Same  as  national  banks. 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Code  Supp.  1910,  Tax  Bill,  8th  Subsection  of  Sec.  8.) 

(d)  Building  and  loan  associations. 

Exempt  whether  domestic  or  foreign. 
(Code  1904,  Tax  Bill,  Sec.  82.) 

Sec.  2.    Public  Service  Corporation  Stocks. 

(a)  Virginia  corporations. 

Exempt,  except  stocks  of  steamboat,  express, 
sleeping  car,   telegraph,   and  telephone 
corporations,  which  are  taxable. 
(Code  Supp.  1910,  Tax  Bill,  8th  Subsection  of  Sec. 
8.  See  also  Sec.  27,  as  amended  by  Acts  1912,  Ch. 
214;  Sec.  28,  as  amended  by  Acts  1912,  Ch.  333.) 
[197] 


198  INVESTMENT  SECUKITIES 

'(b)  Corporations  other  than  Virginia  corporations. 

Taxable,  except  stock  of  railway,  canal,  water, 
gas,  and  electric  corporations  doing  busi- 
ness in  the  state. 

(Code    Supp.    1910,    Tax    Bill,    8th    Subsection    of 
Sec.  8.) 

NOTE. —  Stocks  of  corporations  paying  a  franchise 
tax  are  exempt.  Railway  and  canal  corporations  do- 
ing business  in  the  state  pay  a  franchise  tax.  (Code 
Supp.  1910,  Tax  Bill,  Sec.  28.)  All  corporations 
doing  business  in  the  state  furnishing  water  or  heat, 
light  and  power  whether  by  gas  or  electricity  pay  a 
franchise  tax.  (Acts  1912,  Ch.  333,  Sec.  7.) 

Sec.  3.    Insurance  Corporation  Stocks. 

(a)  Virginia  corporations. 

Exempt. 

(Code  Supp.  1910,  Tax  Bill,  Sees.  23-26.) 

(b)  Corporations  other  than  Virginia  corporations. 

Taxable. 

(See  sections  cited  under  Sec.  3 (a).) 

Sec.  4.    Manufacturing  Corporation  Stocks. 

(a)  Virginia  corporations. 

Exempt. 

(Code  Supp.  1910,  Tax  Bill,  8th  Subsection  of  Sec. 
8.     See  also  Sec.  43.) 

(b)  Corporations  other  than  Virginia  corporations. 

Taxable. 

(See  sections  cited  under  Sec.  4(a).) 

Sec.  5.    Other  Business  Corporation  Stocks, 
(a)  Virginia  corporations. 

Same  as  Sec.  4 (a). 


EXEMPT  AND  TAXABLE  —  VIRGINIA  199 

{b)  Corporations  other  than  Virginia  corporations. 
Same  as  Sec.  4(b)., 

Sec.  6.    Unincorporated  Association  Stocks. 

Exempt. 

NOTE. —  There  are  no  tax  laws  particularly  relating 
to  unincorporated  associations  or  their  shares.  Code 
Supp.  1910,  Tax  Bill,  Sec.  8,  defining  taxable  per- 
sonal property  includes  "  shares  of  stock  of  all  in- 
corporated companies,  except  companies  all  of  whose 
capital  is  taxed  by  this  state,  companies  which  pay 
a  franchise  tax  in  this  state  and  banks,  banking  asso- 
ciations, trust  and  security  companies  which  are  other- 
wise taxed  in  this  state."  Under  this  the  shares  of 
nearly  all  domestic  corporations  are  exempt  because 
they  pay  a  franchise  tax,  and  shares  in  most  foreign 
corporations  are  taxable  because  all  their  capital  (i.  e., 
property)  is  not  taxed  in  Virginia.  The  statute  impos- 
ing the  franchise  tax  on  domestic  manufacturing  and 
business  corporations  (See.  43)  uses  the  words: 
"Joint  stock  company  or  association  organized  by, 
under  or  pursuant  to  law  in  this  state  "  but  excepts 
railway,  canal,  light,  heat,  power,  gas,  water,  insur- 
ance, banking,  security,  and  telephone  companies  from 
its  operation  as  they  are  subject  to  a  franchise  tax 
levied  under  other  sections.  In  practice  all  unincor- 
porated association  shares  are  exempt  because  no  law 
expressly  provides  for  their  taxation. 


BONDS. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 


200  INVESTMENT  SECURITIES 

Sec.  8.    Virginia  State  Bonds. 

All  obligations  issued  by  the  state  since  Feb- 
ruary 14,  1882,  are  exempt. 
(Const.  1902,  Art.  XIII,  Sec.  183;  Code  1904,  Sec. 
488;  Code  Supp.  1910,  Tax  Bill,  Sec.  8,  Cl.  1.) 

r   9.    Virginia  Municipal  Bonds. 

,  10.    State  and    Municipal  Bonds  of  Other 

States  and  Countries. 
11.    Corporation  Bonds. 

Taxable. 

(Code  Supp.  1910,  Tax  Bill,  Sec.  8.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 
Taxable  whether  the  real  estate  is  in  Virginia 

or  elsewhere. 
(Code  Supp.  1910,  Sec.  8.) 

Sec.  13.    Commercial  Paper. 
Same  as  Sec.  12. 


Sees. 


EXEMPT  AND  TAXABLE  —  VIRGINIA  201 

BANK  DEPOSITS. 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  Virginia  Banks. 

16.  Deposits  in  Virginia  Savings  Banks. 

17.  Deposits  in  Banks  Located  Outside  Vir- 

ginia. 

Taxable. 

(Code  Supp.  1910,   7th   Subsection  of  Sec.  8.     See 
also  Code  1904,  Sec.  489.) 

NOTE  1.  Bonds,  demands,  and  claims  owing  to 
others  may  be  deducted  from  the  total  amount  of 
bonds  and  notes  and  only  the  balance  assessed,  but 
this  shall  not  include  any  money  due  on  account  of 
the  purchase  of  nontaxable  securities. 
(Code  Supp.  1910,  Tax  Bill,  1st  Subsection  of  Sec. 

8.     See   also   Sec.   17,   as  amended  by  Acts  1912, 

Ch.  15.) 

NOTE  2.  Virginia  levies  an  income  tax  on  income 
in  excess  of  $2,000  in  addition  to  the  direct  property 
tax  and  it  applies  to  the  income  from  all  securities 
regardless  of  the  above  exemptions. 
(Code  1904,  Tax  Bill,  Sees.  9  and  10,  as  amended  by 

Acts  1912,  Ch.  279.     See  also  Sec.  11.) 


WASHINGTON. 


STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable,  but  a  proportionate  part  of  the  as- 
sessed value  of  any  real  estate  owned  by 
the  bank  is  deducted  from  the  value  of 
the  shares  of  each  stockholder.  The  tax 
is  always  paid  by  the  bank. 
(Rem.  &  Bal.  Codes,  Sees.  9134,  9135,  9136.) 

NOTE. —  Under  the  decision  in  Pullman  State  Bank 
v.  Manring,  18  Wash.  250,  it  would  seem  that  bank 
stocks  like  other  stocks  should  be  classed  as  "  credits  " 
rather  than  "  property "  and  exempt  (see  note  under 
2)  but  in  practice  they  are  still  taxed. 

(b)  Washington  banks. 

Taxable,  but  deductions  are  allowed  for  real 
estate  as  under  (a).    The  tax  is  always 
paid  by  the  bank. 
(Rem.  &  Bal.  Codes,  Sees.  9134,  9135,  9136.) 

(c)  Banks  of  other  states  and  countries. 

Exempt  in  practice.    (See  note  after  Sec.  5.) 

(d)  Building  and  loan  associations. 

Exempt  in  practice.     (See  note  after  Sec.  5.) 

[202] 


EXEMPT  AND  TAXABLE  —  WASHINGTON        203 

f  2.    Public  Service  Corporation  Stocks, 
g       j  3.    Insurance  Corporation  Stocks. 

I  4.    Manufacturing  Corporation  Stocks. 

[  5.    Other  Business  Corporation  Stocks. 
f  (a)   Washington  corporations. 
[  (b)   Corporations  other  than  Washington  corporations. 

Exempt  in  practice. 

NOTE. —  By  the  statutes  of  Washington  stock  in 
corporations  is  exempt  if  the  corporation  is  taxed 
on  its  property.  (Rem.  &  Bal.  Codes,  Sec.  9127.) 
This  has  been  held  constitutional  because  stocks  are 
said  to  be  "  credits  "  like  bonds,  and  not  "  property  " 
within  the  meaning  of  Art.  VII,  Sees.  1  and  2  of  the 
state  constitution.  (Wolf  v.  Parmenter,  50  Wash. 
164.)  In  practice  it  is  apparently  assumed  that  all 
corporations,  whether  incorporated  under  the  laws 
of  Washington  or  elsewhere,  and  whether  doing  busi- 
ness in  Washington  or  elsewhere,  are  taxed  on  their 
property,  and  so  their  stock  is  exempt. 

Sec.  6.    Unincorporated  Association  Stocks. 
Exempt. 

•(Rem.  &  B'al.  Codes,  Sec.  9127;  Ridpath  v.  Spokane 
County,  23  Wash.  436.) 


BONDS. 


Sees. 


Sec.  7.    United  States  Bonds. 
Exempt.    (Seep.  11.) 
•  8.    Washington  State  Bonds. 
9.    Washington  Municipal  Bonds. 

10.  State  and  Municipal  Bonds  of  Other 

States  and  Countries. 

11.  Corporation  Bonds. 


204  INVESTMENT  SECURITIES 

Exempt. 

(Rem.  &  Bal.  Codes,  Sec.  9093;  Wolf  v.  Parmenter, 
50  Wash.  164.) 

Under  the  decisions  referred  to  in  the  note 
after  Sec.  5,  all  bonds  are  treated  as 
"  credits,"  not  "  property  "  and  so  are 
exempt. 


NOTES. 

Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 
Exempt  whether  the  real  estate  is  in  Wash- 
ington or  elsewhere. 
(Rem.  &  Bal.  Codes,  Sec.  9093.) 

Sec.  13.    Commercial  Paper. 

Exempt. 

(Same  citation.) 


BANK  DEPOSITS. 


Sees. 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  Washington  Banks. 

16.  Deposits  in  Washington  Savings  Banks. 

17.  Deposits    in    Banks    Located    Outside 

Washington. 

Exempt  in  practice. 

NOTE. —  The  statutes  of  Washington  expressly  de- 
fine bank  deposits  as  "  property "  and  make  them 
therefore  taxable.  (Rem.  &  Bal.  Codes,  Sec.  9097.) 
But  under  the  decision  in  Wolf  v.  Parmenter,  50 
Wash.  164,  above  referred  to,  distinguishing  between 
property  and  credits,  the  practice  now  is  to  treat  all 
bank  deposits  as  exempt. 


WEST  VIRGINIA. 


STOCKS. 


Sec.  1.    Bank  Stocks. 
<a)  National  banks. 

Taxable  to  the  holders  but  the  tax  is  paid  by 
the  bank,  and  deduction  is  allowed  for 
real  estate  owned  by  the  bank  and  for 
U.  S.  bonds  held  by  the  bank. 
(Code  of  1906,  Sec.  739,  Subd.  j,  Sees.  746  and  763; 
58  W.  Va.  559.) 

{b)  West  Virginia  banks. 

Taxable  to  the  holder  but  the  bank  pays  the 
tax  for  the  holder.  Deduction  is  allowed 
for  real  estate  owned  by  the  bank. 

(Same  citations.) 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Sec.  746,  supra.) 

(d)  Building  and  loan  associations. 

Taxable  to  the  holder. 
(42  W.  Va.  818.) 


Sees.  * 


2.  Public  Service  Corporation  Stocks. 

3.  Insurance  Corporation  Stocks. 

4.  Manufacturing  Corporation  Stocks. 

5.  Other  Business  Corporation  Stocks. 

[205] 


206  INVESTMENT  SECURITIES 


(a)  West  Virginia  corporations. 

(b)  Corporations  other  than  West  Virginia  corporations. 

Exempt  if  the  corporation  returns  its  prop- 
erty for  taxation  and  pays  taxes  thereon 
whether  in  West  Virginia  or  elsewhere. 
If  the  holder  does  not  make  a  sworn  re- 
turn to  that  effect,  the  burden  is  on  him 
to  prove  the  right  to  exemption  if  he  is 
later  assessed.  If  his  return  states  that 
the  corporation  pays  taxes  on  its  prop- 
erty, the  burden  is  on  the  state  to  dis- 
prove it. 

(Code   of   1906,    Sees.   745-750,   inc.,   761,   768,   and 
1095;  Supp.  1909,  Sees.  741,  762,  764,  768.) 

Sec.  6.    Unincorporated  Association  Stocks. 

Same  as  corporation  stocks. 

(Code  of  1906,  Sees.  744,  746,  748,  and  750.) 


BONDS. 


Sec.  7.    United  States  Bonds. 
Exempt.     (See  p.  11.) 

Sec.  8.    West  Virginia  State  Bonds. 

Taxable. 

(Code  of  1906,  Sees.  745,  746,  747.) 


EXEMPT  AND  TAXABLE  —  WEST  VIRGINIA      207 

Sec.  9.    West  Virginia  Municipal  Bonds. 
Taxable.     A   statute    provides    that    county 
bonds  may  be  exempt  if  it  be  so  provided 
on  the  face  thereof  but  it  is  thought  to  be 
unconstitutional. 

(Code  of  1906,  Sees.  745,  746,  747;  Code  Supp.  of 
1907,  Sec.  1216a2.) 

Sec.  10.    State  and  Municipal  Bonds  of  Other  States 
and  Countries. 

Taxable. 

(Sees.  745,  746,  747,  supra.) 

Sec.  11.    Corporation  Bonds. 

Taxable. 

(Same  citations.) 


NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 

Taxable  whether  the  real  estate  is  in  West 

Virginia  or  elsewhere. 
(Code  of  1906,  Sees.  738,  745,  and  746.) 

Sec.  13.    Commercial  Paper. 

Taxable. 

(Code  of  1906,  Sees.  745,  746,  747,  and  751.) 


208  INVESTMENT  SECUKITIES 

BANK  DEPOSITS. 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  West  Virginia  Banks. 

16.  Deposits    in    West    Virginia    Savings 

o6CS.  <j  T>      i 

Banks. 

17.  Deposits    in    Banks    Located    Outside 

West  Virginia. 

Taxable. 

(Code  of  1906,  Sees.  745,  746,  and  747;  18  W.  Va. 
476.) 

NOTE. —  Deduction    of    debts    is    allowed    against 
money,  credits  and  investments,  which  include  stocks, 
bonds,  notes,  and  deposits. 
(Code  1906,  Sec.  751.) 


WISCONSIN. 


STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable  to  the  holder,  but  the  bank  may  pay 

the  tax  for  the  holder. 

(Rev.  Stat.  1898,  Sec.  1050,  Subd.  9,  Sec.  2024,  pp. 
1527,  1528;  Suppl.  1906,  Sees.  1042,  1051,  1057; 
124  Wis.  15.) 

(b)  Wisconsin  banks. 

Same  as  national  banks. 

(c)  Banks  of  other  states  and  countries. 

Same  as  Sees.  2-17  inclusive    (see  below). 

(d)  Building  and  loan  associations. 

Exempt. 

(Acts  1911,  Ch.  658,  Part  III,  Sec.  3.) 

Sees.  2-17  Inclusive. 

All  other  stocks,  bonds,  notes,  and  deposits 
have  been  exempted  from  the  general 
property  tax  and  holders  are  now  taxed 
only  on  the  income  derived  from  these 
at  uniform  state  rates,  increasing  with 
the  size  of  the  income. 
(Acts  1911,  Ch.  658,  Sec.  3.) 

The  only  exemption  is  that  dividends  or  in- 
come are  exempt  if  received  from  any 

14  [209] 


210  INVESTMENT  SECURITIES 

corporation  or  association  which  has,  it- 
self, been  assessed  on  its  income  and  has 
reported  the  name  and  address  of  the 
stockholder  and  the  amount  of  his  divi- 
dend. 

(Rev.   Stat.,   See.   1087m-4(c),   as  amended  by  Acts 
1911,  Ch.  658,  Sec.  1.) 

NOTE. —  The  effect  of  the  Income  Tax  Law  of  1911 
on  the  taxation  of  bank  stocks  is  not  entirely  clear, 
but  it  would  seem  that  they  continue  to  be  subject  to 
the  direct  property  tax  and  exempt  fi*om  the  income 
tax.  The  entire  law  was  held  constitutional  in  State 
v.  Frear,  134  N.  W.  673. 


WYOMING. 


STOCKS. 


Sec.  1.    Bank  Stocks. 

(a)  National  banks. 

Taxable. 

(Comp.  Stat.,  Sec.  2332.) 

(b)  Wyoming  banks. 

Same  as  national  banks. 

(c)  Banks  of  other  states  and  countries. 

Taxable. 

(Comp.  Stat.,  Sees.  2324,  2339.) 

(d)  Building  and  loan  associations. 

Taxable. 

(Comp.  Stat.,  Sees.  2324,  2339.) 


Sees. 


r2.    Public  Service  Corporation  Stocks. 
3.    Insurance  Corporation  Stocks. 


4.  Manufacturing  Corporation  Stocks. 

5.  Other  Business  Corporation  Stocks. 

(a)  Wyoming  corporations. 

(b)  Corporations  other  than  Wyoming  corporations. 

Taxable. 

NOTE. — All  shares  of  stock,  domestic  and  foreign, 
are  taxable  to  the  holder  since  the  repeal  of  the  ex- 
empting clause  in  Comp.  Stat.,  Sec.  2334,  by  Acts 
1911,  Ch.  79. 

[211] 


212  INVESTMENT  SECURITIES 

Sec.  6.    Unincorporated  Association  Stocks. 

The  statutes  do  not  expressly  provide  for  tax- 
ation of  such  associations  or  their  shares, 
but  if  they  are  treated  as  partnerships, 
the  property  of  the  association  will  be 
taxed  and  not  the  shares. 


BONDS. 

Sec.  7.    United  States  Bonds. 
Exempt.    (See  p.  11). 

Sec.  8.    Wyoming  State  Bonds. 
Exempt,  but  they  must  be  listed  and  marked 

"  exempt." 
(Comp.  Stat.,  Sec.  2323.) 

Sec.  9.    Wyoming  Municipal  Bonds. 

Exempt,  but  they  must  be  listed  and  marked 

"  exempt." 
(Comp.  Stat.,  Sec.  2323.) 

Sec.  10.    State  and  Municipal  Bonds  of  Other  States 

and  Countries. 
Taxable. 

(Const.,  Art.  15,  Sec.  11;  Comp.  Stat.,  Sees.  2324, 
2335.) 

Sec.  11.    Corporation  Bonds. 

Taxable. 

(Comp.  Stat.,  Sees.  2324,  2335.) 

Unless  the  bonds  are  secured  by  mortgage  on 
property  within  the  state,  when  they  are 
exempt.  (See  Sec.  12.) 


EXEMPT  AND  TAXABLE  —  WYOMING  213 

NOTES. 


Sec.  12.    Notes  Secured  by  Real  Estate  Mortgages. 
Exempt  when  the  land  is  within  the  state.    All 
mortgages,  whether  real  or  chattel,  upon 
property  within  the  state  are  exempt. 
(Session  Laws  of  1911,  Ch.  72.) 

Otherwise  taxable. 

(Comp.  Stat.,  rfecs.  2324,  2335,  2339.) 

Sec.  13.    Commercial  Paper. 

Taxable. 

(Comp.  Stat.,  Sees.  2324,  2336,  2339.) 


Sees. 


BANK  DEPOSITS. 


14.  Deposits  in  National  Banks. 

15.  Deposits  in  Wyoming  Banks. 

16.  Deposits  in  Wyoming  Savings  Banks. 

17.  Deposits    in    Banks    Located    Outside 

Wyoming. 

Taxable. 

(Comp.  Stat.,  Sees.  2324,  2339.) 

NOTE. —  From  the  gross  amount  of  all  money  and 
credits  the  taxpayer  may  deduct  debts. 

(Comp.  Stat.,  Sec.  2336.) 


SUMMARY  OF  TAXATION  OF  INVESTMENTS. 


CLASSIFIED  BY  SUBJECTS. 

NOTE. —  The  income  tax  in  North  Carolina,  South  Carolina,  Ok- 
lahoma, Tennessee  and  Wisconsin  applies  to  the  income  from  prop- 
erty herein  described  as  exempt. 

SHARES  OF  STOCK. 

Sec.  1.    Bank  Stocks. 

(a)  Shares  in  National  Banks  Located  in  the  State  Levying 
the  Tax. 

Taxable:  Alabama,  Arizona,  Arkansas,  Cali- 
fornia, Colorado,  Connecticut,  Florida, 
Georgia,  Idaho,  Illinois,  Indiana,  Iowa, 
Kansas,  Kentucky,  Louisiana,  Maine,  Mary- 
land, Massachusetts,  Michigan,  Minnesota, 
Mississippi,  Missouri,  Montana,  Nebraska, 
Nevada,  New  Hampshire,  New  Jersey,  New 
Mexico,  New  York,  North  Carolina,  North 
Dakota,  Ohio,  Oklahoma,  Oregon,  Pennsyl- 
vania, South  Carolina,  South  Dakota,  Ten- 
nessee, Texas,  Utah,  Vermont,  Virginia, 
Washington,  West  Virginia,  Wisconsin, 
Wyoming. 

NOTE. — 'In  almost  all  of  the  above  states,  however, 
the  tax  is  paid  for  the  stockholder  by  the  bank. 

Taxable  at  a  low  fixed  rate:   Rhode  Island. 
Exempt:    Delaware,  District  of  Columbia. 

[214] 


TAXATION  OF  INVESTMENTS  215 

(b)  Shares  in  Banks  and  Trust  Companies  Incorporated  by 
the  State  Levying  the  Tax. 

Taxable:  Alabama,  Arizona,  Arkansas,  Cali- 
fornia, Colorado,  Connecticut,  Florida, 
Georgia,  Idaho,  Illinois,  Indiana,  Iowa, 
Kansas,  Kentucky,  Louisiana,  Maine,  Michi- 
gan, Minnesota,  Mississippi,  Missouri,  Mon- 
tana, Nebraska,  Nevada,  New  Mexico,  North 
Carolina,  North  Dakota,  Ohio,  Oklahoma, 
Oregon,  Pennsylvania,  South  Carolina, 
South  Dakota,  Tennessee,  Texas,  Utah, 
Vermont,  Virginia,  Washington,  West 
Virginia,  Wisconsin,  Wyoming. 

NOTE. —  In  most  of  the  above  states,  however,  the 
tax  is  paid  for  the  stockholder  by  the  bank. 

Exempt:  Delaware,  District  of  Columbia, 
Massachusetts,  New  Hampshire. 

In  Maryland,  shares  of  stock  in  savings 
banks  and  other  institutions  for  receiving 
long-time  deposits  and  paying  interest 
thereon,  are  exempt.  Shares  in  other  state 
banks  are  taxable. 

Shares  of  stock  in  New  York  and  New 
Jersey  trust  companies  are  exempt.  Shares 
in  all  other  New  York  and  New  Jersey 
banks  are  taxable. 

In  Rhode  Island,  shares  of  stock  in  do- 
mestic savings  banks  are  exempt.  Shares 
in  other  domestic  banks  are  taxable  at  a 
low  fixed  rate. 


216  INVESTMENT  SECURITIES 

(c)  Shares  in  Banks  Incorporated  by  States  or  Countries 

Other  than  that  Levying  the  Tax. 

Taxable:  Alabama,  Arkansas,  California, 
Colorado,  Florida,  Georgia,  Idaho,  Illinois, 
Indiana,  Iowa,  Kansas,  Kentucky,  Louisi- 
ana, Maine,  Maryland,  Massachusetts, 
Michigan,  Minnesota,  Mississippi,  Montana, 
Nebraska,  Nevada,  New  Mexico,  New  York, 
North  Carolina,  North  Dakota,  Ohio,  Okla- 
homa, Oregon,  Pennsylvania,  South  Caro- 
lina, South  Dakota,  Tennessee,  Texas,  Utah, 
Virginia,  West  Virginia,  Wyoming. 

Taxable  at  a  low  fixed  rate :    Rhode  Island. 

Exempt:  Connecticut,  Delaware,  District  of 
Columbia,  Missouri,  Wisconsin. 

Exempt  in  practice  (see  text) :  New  Hamp- 
shire, New  Jersey,  Vermont,  Washington. 

Arizona  (see  text). 

(d)  Shares    in    Building    and    Loan    Associations    or    Co- 

operative Banks  Organized  Under  the  Laws  of  the 
State  Levying  the  Tax. 

Taxable:  Arizona,  Colorado,  Florida,  Illi- 
nois, Iowa,  Kansas,  Kentucky,  Louisiana, 
Mississippi,  Montana,  Nebraska,  New  Mex- 
ico, North  Dakota,  Ohio,  Oregon,  South 
Dakota,  Texas,  West  Virginia,  Wyoming. 

Taxable  at  a  low  fixed  rate:    Rhode  Island. 

Exempt:  California,  Connecticut,  Delaware, 
District  of  Columbia,  Georgia,  Idaho, 
Maine,  Massachusetts,  Minnesota,  New 
Hampshire,  New  Jersey,  New  York,  North 


TAXATION  OF  INVESTMENTS  217 

Carolina,  Oklahoma,  South  Carolina,  Ten- 
nessee, Virginia,  Washington,  Wisconsin. 

In  Maryland,  Nevada,  Utah  and  Vermont 

stock  of  building  and  loan  associations  is 

exempt  if  the  property  of  the  association  is 

in  the  state ;  otherwise  such  stock  is  taxable. 

In  Arkansas,  Indiana  and  Pennsylvania 

stock  in  building  and  loan  associations  is 

taxable  if  it  is  matured  or  partially  matured 

to  the  extent  of  paying  dividends ;  otherwise 

it  is  exempt. 

Alabama,  Michigan,  Missouri  (see  text). 

Sec.  2.    Public  Service  Corporation  Stocks. 

(a)  Shares  in  Companies  Incorporated  by  the  State  Levying 
the  Tax. 

Taxable:    Oregon,  Wyoming. 

Taxable  at  a  low  fixed  rate:    Pennsylvania. 

Taxable,  but  corporation  pays  tax:   Maryland. 

Exempt:  Alabama,  Arkansas,  Colorado,  Con- 
necticut, Delaware,  District  of  Columbia, 
Florida,  Georgia,  Idaho,  Illinois,  Kansas, 
Louisiana,  Massachusetts,  Mississippi,  Mis- 
souri, Montana,  New  Jersey,  New  York, 
North  Carolina,  North  Dakota,  Ohio,  Okla- 
homa, South  Carolina,  South  Dakota,  Ten- 
nessee, Texas,  Utah,  Vermont,  Washington, 
Wisconsin. 

Exempt  in  practice  (see  text) :  California, 
Indiana,  Kentucky,  Minnesota,  Nebraska, 
Nevada,  New  Hampshire,  Ehode  Island, 
West  Virginia. 


218  INVESTMENT  SECURITIES 

In  Iowa,  Maine  and  Virginia  it  depends 
on  the  kind  of  business  done.  In  Iowa, 
where  taxable,  the  tax  is  at  a  low  fixed  rate 
(see  text). 

Arizona,  Michigan  and  New  Mexico  (see 
text). 

(b)  Shares  in  Companies  Incorporated  by  Some  Other  State 
or  Country  than  that  Levying  the  Tax. 

Taxable:  Alabama,  Florida,  Georgia,  Idaho, 
Illinois,  Indiana,  Louisiana,  Michigan,  Mis- 
sissippi, Montana,  New  Mexico,  North 
Dakota,  Oregon;  Texas,  Utah,  Wyoming. 

Taxed  in  practice  (see  text) :    Colorado. 

Taxable  at  a  low  fixed  rate:  Iowa,  Pennsyl- 
vania. 

Exempt:  Connecticut,  Delaware,  District  of 
Columbia,  Missouri,  New  York,  Wisconsin. 

Exempt  in  practice  (see  text) :  New  Hamp- 
shire, Vermont,  Washington. 

Exempt  if  the  corporation  does  business  or 
has  property  in  the  state  (see  text) :  Ari- 
zona, California,  Kansas,  Kentucky,  Minne- 
sota, Nebraska,  Nevada,  New  Jersey,  North 
Carolina,  Oklahoma,  Rhode  Island,  South 
Carolina,  South  Dakota,  Tennessee,  West 
Virginia. 

In  Arkansas,  Maine,  Maryland,  Massa- 
chusetts and  Virginia  stock  in  certain  kinds 
of  foreign  public  service  corporations  doing 
business  in  the  state  is  exempt,  all  others 
taxable  (see  text). 


TAXATION  OF  INVESTMENTS  219 

In  Ohio  it  depends  on  the  amount  of  prop- 
erty of  the  corporation  in  the  state  (see 
text). 

Sec.  3.    Insurance  Corporation  Stocks. 

(a)  Shares  in  Companies  Incorporated  by  the  State  Levying 
the  Tax. 

Taxable:  Montana,  Nebraska,  Oregon, 
Wyoming. 

Taxable  at  a  low  fixed  rate  (see  text) : 
Iowa,  Pennsylvania,  Rhode  Island. 

Taxable,  but  corporation  pays  tax:  Mary- 
land, Tennessee. 

Exempt:  Alabama,  Arkansas,  Colorado,  Con- 
necticut, Delaware,  District  of  Columbia, 
Florida,  Georgia,  Illinois,  Kansas,  Louisi- 
ana, Massachusetts,  Michigan,  Mississippi, 
Missouri,  New  Jersey,  New  York,  North 
Carolina,  North  Dakota,  Ohio,  Oklahoma, 
South  Carolina,  South  Dakota,  Texas,  Utah, 
Vermont,  Virginia,  Wisconsin. 

Exempt  in  practice  (see  text) :  Kentucky, 
New  Hampshire,  Washington. 

In  Arizona,  California,  Idaho,  Indiana, 
Minnesota,  Nevada  and  West  Virginia 
stock  in  domestic  insurance  corporations 
is  exempt  if  the  corporation  does  busi- 
ness in  the  state;  otherwise  such  stock  is 
taxable. 

In  Maine  shares  in  life  insurance  com- 
panies are  exempt;  others  taxable. 

New  Mexico  (see  text). 


220  INVESTMENT  SECUEITIES 

(b)  Shares  in  Companies  Incorporated  by  some  Other  State 
or  Country  than  that  Levying  the  Tax. 

Taxable:  Alabama,  Florida,  Georgia,  Illi- 
nois, Indiana,  Louisiana,  Maine,  Massa- 
chusetts, Michigan,  Mississippi,  Nebraska, 
North  Carolina,  North  Dakota,  South  Da- 
kota, Texas,  Virginia,  Wyoming. 

Taxed  in  practice  (see  text) :    Colorado. 

Taxable  at  a  law  fixed  rate:  Iowa,  Maryland, 
Pennsylvania,  Ehode  Island. 

Exempt:  Connecticut,  Delaware,  District  of 
Columbia,  Missouri,  New  York,  Oregon, 
Utah,  Wisconsin. 

Exempt  in  practice  (see  text) :  New  Hamp- 
shire, New  Jersey,  Vermont,  Washington. 
In  Arizona,  Arkansas,  California,  Idaho, 
Kansas,  Kentucky,  Minnesota,  Montana, 
Nevada,  Oklahoma,  South  Carolina  and 
West  Virginia  shares  of  stock  in  foreign 
insurance  corporations  are  exempt  if  the 
corporation  does  business  in  the  state; 
otherwise  they  are  taxable. 

In  Ohio  it  depends  on  amount  of  property 
of  the  corporation  in  the  state  (see  text). 

New  Mexico  and  Tennessee  (see  text). 

Sec.  4.    Manufacturing  Corporation  Stocks. 

(a)  Shares  in  Companies  Incorporated  by  the  State  Levying 

the  Tax. 

Taxable:    Oregon,  Vermont,  Wyoming. 
Taxable,    but    corporation    pays    the    tax: 
Maryland. 


TAXATION  OF  INVESTMENTS  221 

Taxable  at  a  low  fixed  rate :    Iowa. 

Exempt:  Arkansas,  Colorado,  Connecticut, 
Delaware,  District  of  Columbia,  Florida, 
Georgia,  Illinois,  Kansas,  Louisiana,  Massa- 
chusetts, Michigan,  Mississippi,  Missouri, 
New  Jersey,  New  York,  North  Carolina, 
North  Dakota,  Ohio,  Oklahoma,  Tennessee, 
Texas,  Virginia,  Wisconsin. 

Exempt  in  practice  (see  text) :  Kentucky, 
New  Hampshire,  Washington.. 

In  Arizona,  California,  Idaho,  Indiana, 
Maine,  Minnesota,  Montana,  Nebraska,  Ne- 
vada, New  Mexico,  Ehode  Island,  South 
Carolina,  South  Dakota,  Utah  and  West 
Virginia  shares  of  stock  in  domestic  manu- 
facturing corporations  are  exempt  if  the 
corporation  pays  a  tax  upon  its  property 
or  capital  or  ' '  is  located  ' '  in  the  state ; 
otherwise  they  are  taxable.  Whether  all 
the  property  of  the  corporations  must  be  in 
the  state  granting  its  charter  in  order  that 
the  stock  may  be  exempt  has  not  in  all 
cases  been  decided  (see  text). 

In  Pennsylvania  shares  of  stock  in  do- 
mestic manufacturing  companies,  except 
brewing  and  distilling  corporations,  are 
exempt  to  an  extent  equal  to  the  proportion 
of  the  entire  corporate  capital  invested  in 
manufacturing  in  the  state ;  and  the  bal- 
ance is  taxed.  Shares  in  brewing  and  dis- 
tilling companies  are  taxed  upon  their 


222  INVESTMENT  SECURITIES 

entire  value.     All  these  taxes  are  at  a  low 
fixed  rate. 
Alabama  (see  text). 

(b)  Shares  in  Companies  Incorporated  by  some  Other  State 
or  Country  than  that  Levying  the  Tax. 

Taxable:  Florida,  Georgia,  Illinois,  Indiana, 
Louisiana,  Massachusetts,  Michigan,  Mis- 
sissippi, North  Carolina,  North  Dakota, 
Oregon,  Texas,  Virginia,  Wyoming. 

Taxed  in  practice  (see  text) :    Colorado. 

Taxable  at  a  low  fixed  rate:  Iowa,  Maryland. 

Exempt:  Connecticut,  Delaware,  District  of 
Columbia,  Missouri,  New  York,  Wisconsin. 

Exempt  in  practice  (see  text) :    New  Hamp- 
shire, New  Jersey,  Vermont,  Washington. 
In  Ohio  it  depends  on  the  amount  of  prop- 
erty of  the  corporation  in  the  state   (see 
text). 

In  Arizona,  Arkansas,  California,  Idaho, 
Kansas,  Kentucky,  Maine,  Minnesota,  Mon- 
tana, Nebraska,  Nevada,  New  Mexico,  Okla- 
homa, Rhode  Island,  South  Carolina,  South 
Dakota,  Tennessee,  Utah  and  West  Virginia 
shares  of  stock  in  foreign  manufacturing 
corporations  are  exempt  if  the  corporation 
pays  a  tax  on  its  property  or  capital  or 
1  'is  located"  in  the  state;  otherwise  they 
are  taxable.  Whether  all  the  property  of 
the  corporation  must  be  in  the  state  levying 


TAXATION  OF  INVESTMENTS  223 

the  tax  in  order  that  the  stock  may  be  ex- 
empt has  not  in  all  cases  been  decided  (see 
text). 

In  Pennsylvania,  shares  of  stock  in  for- 
eign manufacturing  corporations  are  ex- 
empt to  an  extent  equal  to  the  proportion 
of  the  corporate  property  invested  in 
manufacturing  in  the  state,  and  taxed  for 
the  balance.  This  does  not  apply  to  shares 
in  brewing  and  distilling  corporations, 
which  are  taxed  upon  their  entire  value  in 
any  case.  All  these  taxes  are  at  a  low 
fixed  rate. 
Alabama  (see  text). 

Sec.  5.    Other  Business  Corporation  Stocks. 

(a)  Shares  in  Companies  Incorporated  by  the  State  Levying 
the  Tax. 

Taxable:    Oregon,  Vermont,  Wyoming. 

Taxable,  but  corporation  pays  the  tax:  Mary- 
land, Tennessee. 

Taxable  at  a  low  fixed  rate,  but  corporation 
pays  tax:  Pennsylvania. 

Taxable  at  a  low  fixed  rate :    Iowa. 

Exempt:  Arkansas,  Colorado,  Connecticut, 
Delaware,  District  of  Columbia,  Florida, 
Georgia,  Illinois,  Kansas,  Louisiana,  Mas- 
sachusetts, Michigan,  Mississippi,  Mis- 
souri, New  Jersey,  New  York,  North  Caro- 
lina, North  Dakota,  Ohio,  Oklahoma,  Texas, 
Virginia,  Wisconsin. 


224  INVESTMENT  SECURITIES 

Exempt  in  practice  (see  text) :  Kentucky, 
Maine,  New  Hampshire,  Washington. 

In  Arizona,  California,  Idaho,  Indi- 
ana, Minnesota,  Montana,  Nebraska,  Ne- 
vada, New  Mexico,  Ehode  Island,  South 
Carolina,  South  Dakota,  Utah  and  West 
Virginia  shares  of  stock  in  other  domestic 
business  corporations  are  exempt  if  the 
corporation  pays  a  tax  upon  its  property 
or  capital  or  "is  located  ' '  in  the  state ; 
otherwise  they  are  taxable.  Whether  all 
the  property  of  the  corporation  must  be  in 
the  state  granting  the  charter  in  order  that 
the  stock  may  be  exempt  has  not  in  all  cases 
been  decided  (see  text). 

Alabama  (see  text). 

(b)  Shares  in  Companies  Incorporated  by  some  Other  State 
or  Country  than  that  Levying  the  Tax. 

Taxable:  Florida,  Georgia,  Illinois,  Indiana, 
Louisiana,  Maine,  Massachusetts,  Michi- 
gan, Mississippi,  North  Carolina,  North 
Dakota,  Oregon,  Texas,  Virginia,  Wyom- 
ing. 

Taxed  in  practice  (see  text) :    Colorado. 

Taxable  at  a  low  fixed  rate :  Iowa,  Maryland, 
Pennsylvania. 

Exempt:  Connecticut,  Delaware,  District  of 
Columbia,  Missouri,  New  York,  Wisconsin. 

Exempt  in  practice:  New  Hampshire,  New 
Jersey,  Vermont,  Washington. 


TAXATION  OF  INVESTMENTS  225 

In  Ohio  it  depends  on  the  amount  of 
property .  of  the  corporation  in  the  state 
(see  text). 

In  Arizona,  Arkansas,  California,  Idaho, 
Kansas,  Kentucky,  Minnesota,  Montana, 
Nebraska,  Nevada,  New  Mexico,  Oklahoma, 
Rhode  Island,  South  Carolina,  South  Da- 
kota, Utah,  and  West  Virginia  shares  of 
stock  in  other  foreign  business  corpora- 
tions are  exempt  if  the  corporation  pays  a 
tax  on  its  property  or  capital  or  "is  lo- 
cated ' '  in  the  state ;  otherwise  they  are 
taxable. 

Whether  all  the  property  of  the  corpora- 
tion must  be  in  the  state  levying  the  tax  in 
order  that  the  stock  may  be  exempt  has  not 
in  all  cases  been  decided  (see  text). 

Sec.  6.    Unincorporated  Association  Stocks. 

Taxable:    Michigan,  New  York,  Oregon. 

Taxable  at  a  low  fixed  rate  (see  text) :  Rhode 
Island. 

Exempt:  Alabama,  California,  Colorado, 
Connecticut,  Delaware,  District  of  Colum- 
bia, Georgia,  Indiana,  Iowa,  Louisiana, 
Massachusetts,  New  Hampshire,  New  Jer- 
sey, North  Dakota,  Vermont,  Virginia, 
Washington,  Wisconsin. 

In  Arizona,  Idaho,  Kansas,  Minnesota, 
Montana,  Nebraska,  Nevada,  New  Mexico, 
North  Carolina,  South  Carolina,  South 

15 


226  INVESTMENT  SECURITIES 

Dakota  and  Texas  shares  of  stock  in  unin- 
corporated associations  are  exempt  if  the 
association  has  property  or  "is  located  r 
in  the  state;  otherwise  they  are  taxable. 

In  Arkansas,  Florida,  Illinois,  Kentucky, 
Maryland,  Missouri,  Ohio,  Pennsylvania, 
Utah  and  West  Virginia  such  shares  are 
treated  like  corporation  shares,  the  rules  of 
taxation  differing  according  to  the  kind  of 
business  done. 

Maine,  Mississippi,  Oklahoma,  Tennessee, 
Wyoming  (see  text). 

BONDS. 

Sec.  7.    United  States  Bonds. 

Exempt  in  all  states  by  U.  S.  Statute. 

Sec.  8.    Bonds  of  the  State  Levying  the  Tax. 

Taxable:  Arkansas,  Colorado,  Idaho,  Illi- 
nois, Indiana,  issued  before  April  23,  1903 ; 
Maine,  issued  before  Feb.  1,  1909;  Massa- 
chusetts, issued  before  Jan.  1,  1906 ;  Michi- 
gan, Mississippi,  issued  before  April  1, 
1906;  Montana,  Nebraska,  Nevada,  North 
Dakota,  Oregon,  South  Dakota,  Vermont, 
Virginia,  issued  before  Feb.  14, 1882 ;  West 
Virginia. 

Exempt:  Arizona,  Alabama,  California, 
Delaware,  District  of  Columbia,  Georgia, 
Indiana,  issued  since  April  23,  1903;  Kan- 
sas, Louisiana,  Maine,  issued  since  Feb.  1, 


TAXATION  OF  INVESTMENTS  227 

1909;  Maryland,  Massachusetts,  issued 
since  Jan.  1,  1906;  Minnesota,  Mississippi, 
issued  since  April  1,  1906;  New  Jersey, 
New  Mexico,  Ohio,  Oklahoma,  Pennsyl- 
vania, South  Carolina,  Tennessee,  Texas, 
Virginia,  issued  since  Feb.  14, 1882 ;  Wash- 
ington, Wisconsin. 

State  bonds  of  Connecticut,  New  Hamp- 
shire, North  Carolina,  Rhode  Island  and 
Utah  are  taxable  unless  made  expressly 
exempt  by  the  statute  authorizing  the  issue. 

New  York  state  bonds  are  taxable  with 
the  exception  of  highway,  canal  and  ter- 
minal bonds,  which  are  exempt. 

Florida    and    Kentucky   have    no    state 
bonds  outstanding. 
Iowa,  Missouri,  Wyoming  (see  text). 

Sec.  9.    Bonds  of  Municipalities  of  the  State  Levy- 
ing the  Tax. 

Taxable:  Arkansas,  Colorado,  Florida, 
Idaho,  Illinois,  Indiana,  issued  before  April 
23,  1903;  Iowa,  issued  before  July  4, 
1909 ;  Kentucky,  Maine,  issued  before  Feb. 
1,  1909;  Maryland,  Massachusetts,  issued 
before  May  1,  1908 ;  Mississippi,  issued  be- 
fore April  1,  1906;  Montana,  Nebraska, 
Nevada,  North  Dakota,  Oklahoma,  Oregon, 
Pennsylvania,  South  Carolina  issued  before 
February  20,  1912 ;  South  Dakota,  Tennes- 
see, Texas,  Utah,  Virginia,  West  Virginia. 

Taxable  at  a  low  fixed  rate:    Rhode  Island. 


228  INVESTMENT  SECURITIES 

Exempt:  Alabama,  Arizona,  California,  Del- 
aware, District  of  Columbia,  Georgia,  Indi- 
ana, issued  since  April  23,  1903;  Iowa,  is- 
sued since  July  4,  1909 ;  Kansas,  Louisiana, 
Maine,  issued  since  Feb.  1,  1909;  Massa- 
chusetts, issued  since  May  1,  1908;  Michi- 
gan, Minnesota,  Mississippi,  issued  since 
April  1,  1906;  New  Jersey,  New  Mexico, 
New  York,  Ohio,  South  Carolina,  issued 
since  Feb.  20, 1912 ;  Washington,  Wisconsin. 

Connecticut  municipal  bonds  issued  in 
aid  of  certain  railroads  are  exempt.  All 
others  are  taxable. 

New  Hampshire  municipal  bonds  issued 
since  1907  may  be  exempt  in  the  hands  of 
a  resident  of  the  municipality  issuing  the 
same  if  the  municipality  so  votes.  In  all 
other  cases  they  are  taxable. 

Certain    North    Carolina    and    Vermont 
municipal  bonds  are  exempt.     All  others 
are  taxable  (see  text). 
Missouri,  Wyoming  (see  text). 

Sec.  10.    State  and  Municipal  Bonds  of  States  and 
Countries  other  than  that  Levying  the  Tax. 

Taxable:  Arizona,  Alabama,  Arkansas,  Cal- 
ifornia, Colorado,  Connecticut,  Florida, 
Georgia,  Idaho,  Illinois,  Indiana,  Kansas, 
Kentucky,  Louisiana,  Maine,  Maryland, 
Massachusetts,  Michigan,  Minnesota,  Mis- 
sissippi, Montana,  Nebraska,  Nevada,  New 


TAXATION  or  INVESTMENTS  229 

Hampshire,  New  Jersey,  New  Mexico,  New 
York,  North  Carolina,  North  Dakota,  Ohio, 
Oklahoma,  Oregon,  Pennsylvania,  South 
Carolina,  South  Dakota,  Tennessee,  Texas, 
Utah,  Vermont,  Virginia,  West  Virginia, 
Wyoming. 

Taxable  at  a  low  fixed  rate:  Iowa,  Rhode 
Island. 

Exempt:  Delaware,  District  of  Columbia, 
Washington,  Wisconsin. 

Missouri  (see  text). 

Sec.  11.    Corporation  Bonds. 

Taxable:  Arizona,  Alabama,  Arkansas,  Con- 
necticut, Florida,  Georgia,  Idaho,  Illinois, 
Indiana,  Kansas,  Kentucky,  Louisiana, 
Maine,  Mississippi,  Montana,  Nebraska, 
Nevada,  New  Hampshire,  New  Mexico, 
North  Carolina,  North  Dakota,  Ohio,  Okla- 
homa, Oregon,  South  Carolina,  South 
Dakota,  Tennessee,  Texas,  Utah,  Vermont, 
Virginia,  West  Virginia. 

Taxed  at  a  low  fixed  rate:  Iowa,  Maryland, 
Pennsylvania. 

Exempt:  Delaware,  District  of  Columbia, 
Washington,  Wisconsin. 

Exempt  on  payment  of  license  tax  (see  text) : 
Minnesota,  New  York. 

In  Rhode  Island,  bonds  of  domestic  or 
foreign  corporations  doing  business  in  the 
state  are  exempt.  All  other  corporation 
bonds  are  taxable  at  a  low  fixed  rate. 


230  INVESTMENT  SECURITIES 

Certain  bonds  in  California,   Colorado, 
Massachusetts,  New  Jersey  and  Wyoming- 
are  exempt  (see  text). 
Michigan,  Missouri  (see  text). 

NOTES. 
Sec.  12.    Mortgage  Notes. 

(a)  Mortgages  of  Real  Estate  Located  in  the  State  Levying 
the  Tax. 

Taxable:  Arizona,  Arkansas,  Florida, 
Georgia,  Illinois,  Indiana,  Kansas,  Ken- 
tucky, Maryland,  Mississippi,  .  Montana, 
New  Mexico,  North  Carolina,  North  Dakota, 
Ohio,  Oklahoma,  Oregon,  Pennsylvania, 
South  Carolina,  South  Dakota,  Tennessee, 
Texas,  Vermont,  Virginia,  West  Virginia. 
In  Nebraska  mortgages  are  taxed  only 
as  real  estate  if  executed  since  July  1, 1911, 
otherwise  taxed  as  credits. 

Taxable  at  a  low  fixed  rate:  Iowa,  Rhode 
Island. 

Exempt:  California,  Colorado,  Connecticut, 
Delaware,  District  of  Columbia,  Idaho, 
Louisiana,  Maine,  Massachusetts,  New 
Jersey,  Utah,  Washington,  Wisconsin, 
Wyoming. 

Exempt  on  payment  of  license  tax  (see  text) : 

Alabama,  Michigan,  Minnesota,  New  York. 

In  New  Hampshire  mortgages  secured  by 

local  real  estate  and  bearing  interest  at  a 


TAXATION  OF  INVESTMENTS  231 

rate  not  greater  than  5  per  cent,  are  ex- 
empt.    All  others  are  taxable. 
Missouri  and  Nevada  (see  text). 

(b)  Mortgages  of  Real  Estate  Located  Outside  the  State 
Levying  the  Tax. 

Taxable :  Alabama,  Arizona,  Arkansas,  Colo- 
rado, Connecticut,  Florida,  Georgia,  Illi- 
nois, Indiana,  Kansas,  Kentucky,  Louisi- 
ana, Maine,  Massachusetts,  Michigan,  Mis- 
sissippi, Montana,  Nebraska,  Nevada,  New 
Hampshire,  New  Jersey,  New  Mexico, 
North  Carolina,  North  Dakota,  Ohio,  Okla- 
homa, Oregon,  Pennsylvania,  South  Caro- 
lina, South  Dakota,  Tennessee,  Texas,  Ver- 
mont, Virginia,  West  Virginia,  Wyoming. 

Taxable  at  a  low  fixed  rate :  Iowa,  Maryland, 
Minnesota,  Rhode  Island. 

Exempt:  California,  Delaware,  District  of 
Columbia,  Idaho,  Utah,  Washington,  Wis- 
consin. 

Exempt  on  payment  of  license  fee:  New 
York. 

Missouri  (see  text). 

Sec.  13.    Commercial  Paper. 

Taxable:  Alabama,  Arizona,  Arkansas,  Cal- 
fornia,  Colorado,  Connecticut,  Florida, 
Georgia,  Idaho,  Illinois,  Indiana,  Kansas, 
Kentucky,  Louisiana,  Maine,  Maryland, 
Massachusetts,  Michigan,  Mississippi,  Mon- 


232  INVESTMENT  SECURITIES 

tana,  Nebraska,  Nevada,  New  Hampshire, 
New  Mexico,  New  York,  North  Carolina, 
North  Dakota,  Ohio,  Oklahoma,  Oregon, 
South  Carolina,  South  Dakota,  Tennessee, 
Texas,  Utah,  Vermont,  Virginia  West  Vir- 
ginia, Wyoming. 

Taxable  at  a  low  fixed  rate:  Iowa,  Minnesota, 
Rhode  Island. 

Exempt:  Delaware,  District  of  Columbia, 
Washington,  Wisconsin. 

Certain  notes  are  exempt  (see  text) :  New 
Jersey,  Pennsylvania. 

Missouri  (see  text). 

Bank  Deposits. 

Sees.  14-16.    Deposits  in  Banks  Located  in  the  State 
Levying  the  Tax. 

Taxable:  Arizona,  Arkansas,  Colorado, 
Florida,  Georgia,  Idaho,  Illinois,  Indiana, 
Kansas,  Kentucky,  Louisiana,  Michigan, 
Mississippi,  Missouri,  Montana,  Nebraska, 
Nevada,  New  Mexico,  North  Carolina, 
North  Dakota,  Ohio,  Oklahoma,  Oregon, 
South  Carolina,  South  Dakota,  Tennessee, 
Texas,  Utah,  Virginia,  West  Virginia,  Wy- 
oming. 

Taxable  at  a  low  fixed  rate:   Iowa,  Minnesota, 
Exempt:      Alabama,   Delaware,  District  of 
Columbia,    Maryland,    Washington,    Wis- 
consin. 


TAXATION  OP  INVESTMENTS 

In  Pennsylvania,  all  bank  deposits  bear- 
ing interest  are  taxable;  while  those  sub- 
ject to  check  are  exempt. 

In  California,  New  Jersey  and  New  York, 
deposits  in  state  and  national  banks  are 
taxable;  while  those  in  savings  banks  are 
exempt. 

In  Connecticut,  deposits  in  national 
banks  are  taxable,  while  those  in  savings 
banks  are  exempt;  and  deposits  in  state 
banks  and  trust  companies  are  taxable  if 
subject  to  check;  otherwise  exempt. 

In  Massachusetts,  deposits  are  treated 
the  same  as  in  Connecticut,  except  that  the 
exemption  in  the  case  of  trust  company 
deposits  is  limited  to  a  certain  amount. 
Maine,  New  Hampshire,  Vermont,  Ehode 
Island  (see  text). 

Sec.  17.    Deposits  in  Banks  Located  Outside  the 
State  Levying  the  Tax. 

Taxable:  Arizona,  Arkansas,  California, 
Colorado,  Connecticut,  Florida,  Georgia, 
Idaho,  Illinois,  Indiana,  Kansas,  Kentucky, 
Louisiana,  Maine,  Massachusetts,  Michi- 
gan, Mississippi,  Missouri,  Montana, 
Nebraska,  Nevada,  New  Hampshire,  New 
Mexico,  New  York,  North  Carolina,  North 
Dakota,  Ohio,  Oklahoma,  Oregon,  South 


234  INVESTMENT  SECURITIES 

Carolina,  South  Dakota,  Tennessee,  Texas, 
Utah,  Vermont,  Virginia,  West  Virginia, 
Wyoming. 

Taxable  at  a  low  fixed  rate:  Iowa,  Minnesota, 
Rhode  Island. 

Exempt:  Alabama,  Delaware,  District  of 
Columbia,  Maryland,  Washington,  Wis- 
consin. 

New  Jersey,  Pennsylvania  (see  text). 


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